Gold prices moved higher in Monday’s trading session, rising more than 1% to trade above $5,020 per ounce, marking the strongest level in over a week.
The upward move was supported primarily by a softer US dollar and renewed expectations that the Federal Reserve could begin easing policy if labour market conditions weaken further.
Over the past month, gold prices have gained 8.81%, and are up 71.50% year-on-year, based on trading in contracts for difference (CFDs) that track the benchmark market for the commodity. The strong performance underscores sustained investor demand amid ongoing macroeconomic uncertainty and shifting monetary policy expectations.
Market participants are positioning ahead of key US economic releases later this week. The January jobs report, due Wednesday, is expected to provide clearer signals on labour market stability, while inflation data scheduled for Friday will help shape expectations around the Fed’s interest rate path.
Comments from San Francisco Fed President Mary Daly, who indicated that one or two rate cuts may be necessary if labour conditions soften, have continued to underpin sentiment in the precious metals space.
On the demand side, institutional buying remains a supportive factor. China’s central bank extended its gold purchases for a 15th consecutive month in January, reinforcing the ongoing structural demand from official sector buyers and reserve diversification strategies.
Geopolitical developments also remain in focus. Investors are monitoring ongoing US–Iran discussions, with both parties agreeing to continue diplomatic engagement this week in an effort to reduce tensions. Persistent geopolitical uncertainty has helped maintain safe-haven interest in gold.
Overall, bullion markets remain sensitive to macroeconomic data, currency movements, and central bank signals. Near-term price direction is likely to depend on incoming US labour and inflation data, which could either reinforce expectations of policy easing or prompt renewed volatility across commodity markets.
