Gold prices rebounded on Friday after hitting a near-week low in the previous session, as investors awaited US inflation data to orient interest rate outlook, amid positive job data easing interest rate cut expectations.
Spot gold prices rose 0.6% to 4,970.99 USD/ounce in this afternoon's trading session, but still fell 0.2% since the beginning of the week. April gold futures contracts in the US rose 0.4% to 4,968 USD/ounce.
Previously, gold plunged about 3% in Thursday's session, falling to a near-week low and breaking through the important support level of 5,000 USD/ounce as selling pressure increased after a strong correction in the stock market.
Mr. Kyle Rodda - senior market analyst at Capital. com - said that in the current volatile environment, round price levels play an important role in terms of technique and psychology, so when broken, they will trigger stronger sell-offs.
Precious metals are under pressure as global stock markets weaken, especially in Asia as technology stocks adjust due to concerns about shrinking profit margins, affecting large stocks such as Apple. According to Mr. Rodda, gold fell along with stocks but without clear macroeconomic catalysts.
In addition, data released on Wednesday showed that the US labor market started 2026 more steadily than expected, reinforcing the view that the US Federal Reserve (Fed) may maintain interest rates at a higher level for longer.
Investors are currently waiting for the inflation report to be released later in the day to further define the monetary policy roadmap. The market is currently valuing two waves of interest rate cuts, each of 25 basis points this year, with the first expected in June. Gold - a non-rotating asset - usually benefits in a low-interest environment.
In physical markets, gold prices in India for the first time in a month switched to discount status due to weakening demand as prices fluctuated sharply. Meanwhile, demand in China increased as the country entered the peak season before the Lunar New Year holiday.
On the other precious metal market, silver increased by 1.5% to $76.31/ounce after falling 11% in the previous session, although still aiming for a 2.1% decrease in the week. Platinum increased by 0.9% to $2,018.44/ounce, while palladium increased by 2.2% to $1,652.31/ounce; both metals are likely to record a week of decline.
