Gold ETF AAAU Rises on 92k Job Loss, 0.2% Retail Decline
Gold ETF AAAU climbed as U.S. nonfarm payrolls declined by 92,000 in February and January retail sales fell 0.2%, driving investors toward safe-haven bullion. The fund still faces pressure after gold prices slipped about 3% over the past week despite escalating conflict in the Middle East.
1. U.S. Job Loss Spurs Safe-Haven Demand
February’s 92,000 nonfarm payroll decline highlighted slowing U.S. employment trends, prompting a surge in safe-haven demand for gold. AAAU shares climbed to session highs as traders reduced risk assets, reacting to renewed recession fears and expectations of looser monetary policy.
2. January Retail Sales Drop Boosts Bullion
Retail sales dipped 0.2% in January, underscoring soft consumer spending and supporting gold prices. AAAU gained on the weaker spending data as investors priced in potential Federal Reserve interest-rate cuts and demand for hedges against economic uncertainty.
3. Weekly Performance During Middle East Tensions
Despite recent gains, AAAU ended the week down around 3% as escalating conflict in the Middle East failed to sustain a bullish trend. Traders booked profits from earlier rallies, weighing geopolitical risks against a firm dollar and rising Treasury yields.