Gold up over 1% as geopolitical tensions and weaker US jobs data lift safe-haven demand
Gold rose more than 1% to trade near a one-week high after geopolitical tensions and a fragile global outlook lifted safe-haven demand, while weaker US jobs data reinforced expectations of Fed rate cuts.
Gold prices climbed more than 1% on Thursday, hovering near a one-week high as geopolitical tensions and ongoing global economic uncertainty kept demand strong for safe-haven assets. Other precious metals, including silver and palladium, also moved higher.
Market data showed spot gold up 1.1% at $5,016.89 an ounce at 00.39 GMT (07.39am Thailand time), after bullion hit an all-time high of $5,594.82 last Thursday. US gold futures for April delivery rose 1.8% to $5,036.80 an ounce.
On the geopolitical front, US and Iranian officials said the two sides had agreed to hold talks in Oman on Friday, although significant differences remain. The US wants the discussions to include Iran’s missile programme, while Iran has insisted negotiations should focus only on its nuclear programme.
US economic data also supported bullion, after the ADP report showed private-sector employment rose by just 22,000 in January, well below economists’ expectations of 48,000, signalling softness in the labour market and boosting the case for US interest-rate cuts.
President Donald Trump said on Wednesday there was little doubt that the Federal Reserve’s policy rate would be cut, while US Treasury Secretary Scott Bessent said he had no view on whether a president has constitutional authority to remove the Fed chair or other officials—an issue tied to a Supreme Court case involving Trump’s bid to remove Fed Governor Lisa Cook.
Investors are now pricing in at least two Fed rate cuts in 2026, and are watching for the delayed JOLTS job openings report for December, due later the same day after being postponed because of a partial US government shutdown.
