EBC Financial Group Forex Market Report | Gold Slightly Down, Morgan Stanley Supports Micron Technology

K-LinePoet · 2026-02-28T09:31:33+00:00

Strong employment report boosts the US dollar, causing gold prices to decline. US January tariff revenue saw a significant increase, driving economic growth. Despite much higher-than-expected job gains, gold prices remain range-bound and are expected to fall below $5050. Core tech stocks show mixed performance, with Micron Technology rising and IBM stock falling. The FTSE 100 index hit a new high, outperforming other European indices.

K-LinePoet

2026-02-28 09:31:33

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Thursday (February 12) strong employment report boosts the US dollar, leading to a decline in gold. Official data shows that despite rising costs, China purchased gold for the 15th consecutive month in January.

The US government’s January deficit shrank compared to the same period last year, while tariff revenues surged, highlighting the importance of the Supreme Court’s highly anticipated ruling for the federal budget.

Tariff revenues reached $30 billion in January, bringing the total tariff income for the fiscal year to $124 billion. These trade rebalancing measures help stimulate economic growth and inflation.

In January, the US added 130,000 jobs, well above the expected 55,000. This reduces the likelihood of Fed rate cuts and pushes the Treasury yield curve higher across the board.

BCA Research maintains a long-term bullish stance on gold but warns that, given overheated speculative momentum, short-term volatility and significant price corrections may occur again.

Data from the World Gold Council shows that last year’s central bank gold purchases unexpectedly fell by 20%. However, gold investment demand surged, mainly driven by ETF inflows and increased bar demand.

Despite unexpectedly strong non-farm payroll data, gold prices remained range-bound this week. Before the Consumer Price Index release, a breakout from the current range seems unlikely, and gold is expected to gently decline below $5,050.

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As of February 11 close, Micron Technology led gains among major EBC products. Morgan Stanley raised its target price from $350 to $450, maintaining an overweight rating.

IBM’s stock plummeted after launching a new FlashSystem storage line reportedly operated by “Intelligent Agent AI Collaboration.” As investors debate how quickly new AI tools are reshaping the industry landscape, software stocks came under further pressure.

Supported by strong performances from mining, energy producers, and homebuilders, the FTSE 100 rose to new highs, outperforming other European indices. Commodity prices continued their record-breaking rally.

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