Gold heads for weekly gain as traders turn attention to US data

Gold headed for a weekly gain, as traders looked to US jobs data due Friday for clues to the Federal Reserve’s next move on interest rates.

Bullion was near $4,475 an ounce, up around 3% for the week, though was facing some downward pressure from a stronger dollar and lower-than-expected initial jobless claims for the week ended Jan. 3. The December nonfarm payrolls data due Friday could set the tone for whether the Fed will cut interest rates again after three successive reductions in 2025.

A lower interest-rate environment is a tailwind for precious metals, which don’t pay interest, and last year’s cuts were a factor in gold’s best annual performance since 1979. Central-bank buying and inflows to exchange-traded funds on the back of the so-called debasement trade also underpinned bullion’s scorching rally last year, when the metal gained 65% and set a series of records.

In the last week, gold’s appeal has been reinforced by geopolitical tensions around China-Japan trade relations and the US capture of Venezuela’s leader. The ousting of Nicolas Maduro is supportive of higher gold prices, “given the short- and long-term uncertainty it introduces for commodity markets and for Washington’s relations with Beijing and Moscow,” analysts from BMI, a unit of Fitch Solutions Inc., said in a note.

The outlook for Friday’s jobs data is less clear-cut. The numbers are expected to show stronger hiring but steady unemployment — conflicting signals that are unlikely to build urgency for the Fed to resume rate cuts, according to Bloomberg Economics. Meanwhile, the Bloomberg Dollar Spot Index — a gauge of the US currency’s strength — has gained 0.5% this week, making gold more expensive for most buyers.

The imminent selection of a new Fed chair is also being closely watched by traders. Treasury Secretary Scott Bessent said he anticipates President Donald Trump will decide this month on a successor to Jerome Powell, whose term as central bank head will end in May. Four candidates are in the frame, Bessent said.

In the near term, a broad rebalancing of commodity indexes might also put some pressure on prices. The record-breaking rallies in gold and silver are pushing passive tracking funds to sell some contracts over the next few days to match new weightings.

Gold edged down 0.1% to $4 473.88 an ounce as of 2:33 p.m. in Singapore. Silver was up 0.1% to $77.10 and remains on track for a weekly gain, despite falling in the previous two sessions. Platinum and palladium both rose.

© 2026 Bloomberg

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