Gold price drops 3% on US jobs data beat: planning notes for mine projects
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Gold fell back below $5,000/oz on Thursday, dropping as much as 4% to $4,880 before stabilising above $4,900 for a 3% intraday loss, after stronger-than-expected US nonfarm payrolls data showed a 130,000 January jobs gain and unemployment easing to 4.3%. Silver slid nearly 10% as profit-taking on 12‑month gains of about 40% for gold and 160% for silver, plus stop-loss orders clustered below $5,000 and above $5,100, triggered a rapid cascade. Despite January’s historic selloff, bullion remains 17% higher year-to-date, with several banks still projecting up to $6,000/oz on continued central bank and retail demand.
Technical Brief
- January’s prior plunge was the steepest gold fall in over a decade, with silver’s drop the largest on record.
- Nonfarm payrolls rose 130,000 in January after a downwardly revised 48,000 gain in December, tightening labour conditions.
- US unemployment edged down to 4.3%, reinforcing expectations of a longer “higher-for-longer” interest-rate regime.
- Headline US CPI is expected to slow from 2.7% to 2.5%–2.4%, a key input to Fed rate-cut timing.
Our Take
With gold already up 17% year-to-date and 40% over the past year, the 3% intraday drop described here is more of a volatility event than a structural reversal, which is relevant for project developers like Liberty Gold and Cambria Gold Mines in our recent coverage that are advancing low- to mid-grade deposits assuming robust long-term prices.
Silver’s roughly 160% annual gain, contrasted with the sharp near-term pullback, underlines why polymetallic operators in our database (such as Americas Gold and Silver in Idaho’s Silver Valley) are increasingly exposed to silver-price swings in their cash flow modelling and financing strategies.
The 1.2 million tonnes of idle copper smelter capacity outside China noted here dovetails with other copper-tagged pieces in our coverage, signalling that treatment and refining bottlenecks are becoming a material planning risk for new North American copper projects rather than just a price-side consideration.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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