Gold prices climbed above $5,010 per ounce on Monday, hitting their highest level in more than a week, as investors positioned cautiously ahead of key US economic data that could shape the Federal Reserve’s interest-rate outlook.
The focus is now firmly on the January US jobs report, due on Wednesday, which is expected to show signs of stabilisation in the labour market. This will be followed by inflation data on Friday, both of which are likely to influence expectations around the timing and pace of future Fed rate cuts. Lower interest rates typically support non-yielding assets like gold.
The precious metal also drew support from political developments in Japan. A landslide election victory by Prime Minister Sanae Takaichi has reinforced expectations of looser fiscal policy and continued pressure on the yen, a backdrop that tends to be favourable for gold prices.
Adding to the bullish tone, central bank demand remained strong, with People’s Bank of China extending its gold purchases for a 15th consecutive month in January, underlining sustained official-sector appetite for the metal.
On the geopolitical front, talks between the United States and Iran concluded last Friday with an agreement to continue discussions this week. The development eased immediate fears of military escalation in the region, tempering safe-haven demand but not enough to derail gold’s upward move.
Overall, gold’s rise reflects a mix of data-driven caution, supportive global policy signals, and ongoing central bank buying, keeping prices firm as markets await clearer direction from upcoming US economic releases.