Harmovest Capital | Key Insights: Can the U.S. Labour Market Keep the Dollar Rally Going?

11 May 2026 | Market Highlights

Key Takeaways

• U.S. employment data came in stronger than expected, highlighting continued resilience in the labour market.

• Expectations for near-term Federal Reserve rate cuts have eased, supporting the U.S. dollar.

• Safe-haven demand has softened, putting short-term pressure on gold prices.

Market Recap

The U.S. economy added 115,000 non-farm payrolls in April, exceeding market expectations of 55,000, while the unemployment rate remained unchanged at 4.3%.

The data suggests that the U.S. labour market remains stable, reducing expectations for an imminent Fed rate cut.

Following the release, the U.S. Dollar Index (DXY) strengthened, while precious metals such as gold and silver faced short-term pullback pressure. U.S. equities remained broadly stable.

Today's Focus

• U.S. Existing Home Sales

If the data continues to reflect economic resilience, the U.S. dollar may extend its gains.

Affected Instruments

• U.S. Dollar Index (DXY)

• Gold / Silver

• S&P 500

Market Sentiment

The latest Fear & Greed Index rose to 68, indicating a notable improvement in risk appetite and a continued decline in safe-haven demand.

Technical Analysis | XAUUSD

Gold remains relatively firm in the short term, but the easing of geopolitical concerns may increase the likelihood of a pullback.

Key support is located at 4,684. A break below this level could expose gold to further downside.

Summary

Stronger-than-expected U.S. employment data has reinforced near-term support for the U.S. dollar. As market risk sentiment improves and safe-haven demand fades, gold‘s upside momentum may be capped. Investors should closely monitor today’s U.S. Existing Home Sales data for further direction.