Gold ounce surpasses the 5,000 dollar threshold again

Gold continued its rise on the first trading day of the week, holding just above 5,000 dollars per ounce. While the decline in the dollar supports prices, markets are awaiting critical US employment data to be released later this week.

Spot gold rose 1.3 percent to 5,026.04 dollars, following an approximately 4 percent gain seen on Friday. The dollar's retreat to its lowest levels since February 4 has contributed to making dollar-denominated metals more attractive to global buyers.

KCM Chief Analyst Tim Waterer pointed to the cautious optimism in the market, stating, “Gold is rising today, but there is a cautious tone ahead of the important employment data to be released this week. The drop in the dollar and buying from the dip are pushing gold back above 5,000 dollars.”

Statements from the US Federal Reserve have also influenced pricing. San Francisco Fed President Mary Daly said she believes one or two interest rate cuts might be necessary to balance weakness in the labor market. While markets expect at least two 25-basis-point rate cuts within 2026, they anticipate the first step could be taken in June. Gold, which does not provide interest income, generally performs better in low-interest-rate environments.

Emphasizing that employment data will be decisive, Waterer stated, “Weakness in employment data could support gold's recovery. We do not expect a rate cut from the Fed until mid-year; however, this could change if there is a sharp deterioration in employment data.”

On the geopolitical front, Iranian Foreign Minister Abbas Araghchi stated that recognizing Iran's right to uranium enrichment is critical for the success of nuclear negotiations with the US. US and Iranian diplomats held indirect talks in Oman on Friday to revive the diplomatic process while the US naval presence in the region continues.

Other precious metals also saw notable gains. Spot silver rose 4.3 percent to 81.11 dollars, following an approximately 10 percent increase in the previous session. Silver had reached a record high of 121.64 dollars on January 29. Spot platinum fell 0.2 percent to 2,091.54 dollars, while palladium rose 1 percent to 1,723.37 dollars.

News Source: 12punto