Gold maintained its position above the $5,000 threshold during London trading on Monday, with spot prices advancing 1.1% to $5,012.53 per ounce. This follows a substantial 4% rally on Friday. U.S. gold futures for April delivery mirrored the movement, trading at $5,033.70.
Focus on U.S. Economic Indicators
Market participants are closely monitoring upcoming U.S. economic data, including the January employment report scheduled for February 11 and the Consumer Price Index (CPI) due on February 13. Both releases are set for 08:30 a.m. ET. These figures are expected to influence expectations for potential Federal Reserve interest rate adjustments in 2026.
Analysts note that gold's price action is increasingly tied to interest rate expectations and dollar movements, rather than solely its traditional safe-haven status. A weaker U.S. dollar has provided support for the precious metal, as it becomes less expensive for holders of other currencies.
Central Bank Activity and Precious Metals
Official sector demand remains a significant factor. China's central bank reported its 15th straight month of gold purchases in January, raising its reserves to 74.19 million ounces, valued at approximately $369.6 billion.
In other precious metals, silver surged 4.3% to $81.32 per ounce, extending gains from the previous session. Platinum declined 1.5% to $2,065.10, while palladium fell 1.1% to $1,687.50.
Market volatility is anticipated to increase this week as traders digest the incoming economic data. Stronger-than-expected inflation or employment numbers could bolster the dollar and real yields, potentially capping gold's upward momentum.
