The January US jobs report outperformed expectations, with employment increasing nearly double consensus, and wages surging. This drove Gold down to $2,030, from around $2,060 previously. We suspect there will be more selling pressure for Gold, as a result of the robust data. 

It would not be a surprise to see the yellow metal trend down toward $2,005-$2,014 support.

Despite this, we do still expect the Fed to cut rates in May (and for markets this will dispel hopes for an earlier March cut), and along with strong central bank and Asian physical buying, prices should rebound higher. As such, we continue to be happy with our projection of $2,200 in the next quarter.