Gold prices were trading firmer on Friday, January 9, and were set for a weekly gain, supported by weaker-than-expected U.S. labour market data and ongoing macroeconomic and geopolitical uncertainty.
- Spot gold was around $4,485 per ounce, up modestly on the day and tracking a near 3.8% weekly advance.
- U.S. gold futures for February delivery also strengthened, reflecting broad bullion market support.
US labour data supports gold
Gold’s upside was driven in part by a disappointing U.S. jobs report for December, which showed payroll growth of 50,000 jobs, below expectations. At the same time, the unemployment rate eased to 4.4%, indicating a soft labour market that could give the Federal Reserve room to cut interest rates later this year.
Lower real yields and expectations of potential rate cuts have historically been favourable for precious metals, and bullion markets appeared to be pricing in at least two Fed rate reductions in 2026.
Geopolitical and risk factors
In addition to macro signals, elevated geopolitical tensions contributed to the supportive environment for gold. Markets have been watching developments in key regions such as the Middle East, Eastern Europe and broader global risk sentiment, all of which can reinforce safe-haven demand for bullion.
Other metals were also buoyant, with spot silver gaining roughly 2% and poised for an 8–9% weekly rise, while platinum and palladium posted weekly gains amid similar drivers.
Broader market context
While retail physical demand in markets like India remained subdued due to high local prices, premium levels in China widened, signalling mixed but resilient global interest in precious metals.
Analysts have pointed to structural trends such as geopolitical risk, shifting monetary policy expectations, and de-dollarisation as potential catalysts for further long-term gains. Some industry projections even suggest potential gold prices well above current record levels in 2026.
Gold’s weekly advance comes as markets balance macroeconomic uncertainty, central bank outlooks, and ongoing geopolitical risk — making bullion a focal point for investors navigating shifting global conditions.
Note: Price levels cited are indicative. Commodity markets are volatile and subject to change based on economic data, policy shifts, and geopolitical developments.