Gold climbed more than 1% on Thursday, hovering near one-week highs, as geopolitical and economic tensions continued to bolster prices, while silver and palladium also posted gains.
Spot gold was up 1.1% at $5,016.89 per ounce, as of 0039 GMT. Bullion scaled a record high of $5,594.82 last Thursday.
U.S. gold futures for April delivery climbed 1.8% to $5,036.80 per ounce.
On the geopolitical front, Iran and the U.S. have agreed to hold talks in Oman on Friday, officials on both sides said, even as they remained at odds over Washington’s demand that negotiations cover Tehran’s missile arsenal and Iran’s insistence to discuss only its nuclear programme.
U.S. private payrolls rose by just 22,000 in January, well below economists’ expectations for a 48,000 increase, according to ADP data. Labour market weakness typically strengthens the case for interest rate cuts aimed at supporting job creation.
U.S. President Donald Trump said on Wednesday there was “not much” doubt in his mind that benchmark U.S. interest rates will be lowered by the Fed while Treasury Secretary Bessent said he had no opinion on whether the president has a constitutional authority to fire a Federal Reserve chair or board member.
Meanwhile, the U.S. Supreme Court is weighing Trump’s bid to remove Fed Governor Lisa Cook, who said current policy rates are only mildly restrictive and signalled support for taking time before further interest-rate cuts.
Investors expect at least two Fed interest rate cuts in 2026 and will be eyeing the Job Openings and Labor Turnover Survey report for December, due later in the day, delayed by a partial government shutdown from its slated release on Tuesday. [FEDWATCH]
Non-yielding bullion tends to perform better in low-interest-rate environments.
Spot silver climbed 2.1% to $89.88 an ounce. It touched a record high of $121.64 last week.
Spot platinum added 2.1% to $2,272.55 per ounce after hitting an all-time high of $2,918.80 on January 26, while palladium gained 0.7% at $1,787.55.
