In recent trading sessions, spot gold prices have surged dramatically, closing with a remarkable rise of nearly $28. This upward trend, amounting to an increase of approximately 1%, has reached new heights, with prices hitting an intraday peak of $2,845.41, establishing a new historical recordAs of the European market, gold has continued its ascent, reaching $2,869.68, another all-time high, before settling around $2,866.

Echoes of 'key employment data hitting the fan'!

On the previous trading day, the three major U.S. stock indexes ended higherThe Dow Jones Industrial Average rose by 134.13 points, or 0.30%, ending the day at 44,556.04 pointsSimilarly, the Nasdaq Composite gained 262.06 points with a 1.35% increase, landing at 19,654.02 points, while the S&P 500 saw a rise of 43.31 points, up by 0.72%, closing at 6,037.88 points.

The uptick in the U.S. stock market appears to be predominantly influenced by the weak economic data coming from the country.

According to the U.SBureau of Labor Statistics, a report released on Tuesday detailing the job openings and labor turnover survey (JOLTS) from December showed a sharp drop in the number of job openings, reaching a three-month low.

The data indicated that job openings in December totaled 7.6 million, marking the lowest figure since September

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This statistic fell significantly short of economists' expectations, hinting at a possible slowdown in the U.S. economy.

Bloomberg's survey of economists had anticipated that job openings for December would reach around 8 million.

Since reaching a record high of 12.18 million vacancies in March 2022, job openings have shown a general decline, primarily due to the Federal Reserve's aggressive interest rate hikes, which curtailed demandNotably, there was a brief rebound in vacancies during the previous months when the Fed reduced rates.

Additionally, overnight data revealed that U.S. factory orders fell by 0.9% in December, surpassing the expected contraction of 0.7%.

Market participants are currently focused on the upcoming U.SADP employment report, set to be released on Wednesday, along with the non-farm payroll report on Friday, as they seek further clues regarding the state of the labor market and potential shifts in Federal Reserve policy.

Scheduled for release at 21:15 Beijing time on Wednesday, the ADP employment change data for January is often referred to as the 'little non-farm' due to its similar analytical significance.

According to a survey by reputable media outlets, the increase in ADP employment figures for January is projected to be around 150,000. This comes after the unexpected deceleration of the ADP data for December, which recorded the lowest figures since August.

Data released on January 8th from a collaboration between the ADP Research Institute and the Stanford Digital Economy Laboratory revealed that U.S

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ADP employment increased by 122,000 in December, compared to an expected increase of 140,000 and a previous increase of 146,000.

Analysts have pointed out that if January's ADP employment data significantly misses expectations again, it could trigger a new wave of declines for the Dollar while simultaneously boosting U.S. stocks and spot gold prices further.

Regarding the U.S. stock market, various institutions have noted that the overall trend has entered a downward cycle.

Diana Iovanel, a senior market economist at Capital Economics, highlighted in a recent report that the drivers behind a potential bull market in 2025 would closely resemble those from the previous year, with investor enthusiasm around artificial intelligence likely to further elevate the stock prices of leading U.S. tech companies, thereby lifting the entire market.

Manulife Financial expressed concerns that the U.S. stock market is currently experiencing an earnings per share (EPS) downward cycle, facing pressure on corporate profits amid weakening demand, while U.S. treasury rates gradually decline, presenting a relative downside in overall returnsAlthough stock buybacks have somewhat supported share prices, the overall trend still points toward a downward cycle.

According to UBS, due to the high valuations of leading tech companies in the U.S. stock market, investors are advised to adopt appropriate risk hedging measures to navigate through the uncertainties.

However, Goldman Sachs analysts have stated that there is an emerging consensus to cautiously view the tech stock sector until the earnings reports for the “Fab Seven” U.S. tech giants are fully disclosed, with particular emphasis on capital expenditures related to AI.

It is also noteworthy that investors should keep an eye on international developments.

On February 4, local time, Serhiy Syniehubov, head of the Kharkiv Regional Military Administration, reported missile strikes by Russian forces on the city of Izyum in Kharkiv Oblast

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The governor stated that the attack resulted in 5 deaths and 24 injuries.

Currently, there has been no response from Russia regarding the incident.

Additionally, there have been developments regarding the Israeli-Palestinian conflict, with the U.SPresident expressing a desire for the United States to take over the Gaza Strip, redeveloping the area after relocating Palestinian residents.

During a press conference held after a meeting with Israeli Prime Minister Benjamin Netanyahu on February 4, the U.SPresident stated his hope for the U.S. to take charge of the Gaza Strip, remarking on potential redevelopment plans that would transform the region into the “Riviera of the Middle East.”

Moreover, the U.S. president did not rule out the possibility of deploying American troops to Gaza, stating in response to a journalist’s query, “Regarding Gaza, we will take all necessary measuresIf necessary, we will do so.” He also mentioned his intentions to travel to Israel, Palestinian territories, and Saudi Arabia.

In response, Hamas officials termed the President's proposal as “unacceptable.” Saudi Arabia issued a statement rejecting attempts to relocate Palestinians and emphasized that there can be no normalization of relations with Israel without the establishment of a Palestinian state.

Many residents of Gaza have also strongly condemned this proposal

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