Gold rises above $5,000 as dip-buyers return to market after volatile week
.webp)
Gold advanced above $5,000 an ounce, as dip-buyers returned to the market after an exceptionally volatile week for precious metals.
Spot gold climbed as much as 1.7 per cent in early trading, and was also supported by a landslide election victory for incumbent Japanese Prime Minister Sanae Takaichi. Her victory reinforced expectations for looser fiscal policy and sustained pressure on the yen, which would be supportive for bullion as investors look for a better store of value. Silver also rose.
Precious metals crashed from all-time highs at the end of last month, after a record-breaking rally that appeared to run too far, too fast. At Friday’s close, gold was down around 11% from an all-time high hit on Jan. 29, but was still up 15 per cent for the year.
The multiyear bull run accelerated in January, as a wave of speculative investment added fuel to a market already bolstered by heightened geopolitical tensions and the revival of the debasement trade, with investors moving out of sovereign bonds and currencies into hard assets like gold. US Treasury Secretary Scott Bessent cited Chinese traders as a reason behind last week’s wild swings in gold.
Despite a week of choppy trading since the historic rout, gold has recovered around half of its losses. Banks including Deutsche Bank AG and Goldman Sachs Group Inc. have backed bullion to recover due to long-term demand drivers. Data over the weekend showed that the Chinese central bank extended gold purchases for a 15th month, underscoring resilient official demand.
Looking ahead, traders will be watching upcoming US economic data for greater clarity on the Federal Reserve’s policy direction. The January jobs report due Wednesday is expected to show signs of labor market stabilizing, and inflation data is scheduled for Friday.
President Donald Trump’s nominee to become the next Fed chair, Kevin Warsh, has voiced support for a new accord between the US central bank and the Treasury Department, deepening long-held concerns about the Fed’s independence.
Gold rose 1.3 per cent to $5,028.77 an ounce as of 8:28 am in Singapore. Silver advanced 1.7 per cent to $79.18. Platinum and palladium gained. The Bloomberg Dollar Spot Index, a gauge of the US currency, was flat after ending the previous session down 0.4 per cent.
Other Latest News
.webp)
Chief Justice of India Surya Kant on Monday observed that "Gunda Raj" is unacceptable and asked a lawyer, who alleged physical assault inside a courtroom at a district court on February 7 here, to approach the Delhi High Court chief justice.
A lawyer mentioned his plea for urgent listing before a bench comprising Chief Justice Surya Kant and justices Joymalya Bagchi and N V Anjaria.
.webp)
Union Commerce Minister Piyush Goyal and Agriculture Minister Shivraj Singh Chouhan on Sunday asserted that the government has safeguarded the interests of India’s farmers in the interim trade agreement framework with the US. Opposition parties, however, said they would demand answers on the issue in Parliament on Monday.
.webp)
Commerce minister Piyush Goyal on Saturday said India and the United States (US) have finalised an interim trade deal framework aimed at boosting bilateral trade to $500 billion annually. Addressing a press conference, he said the framework, concluded late last night, has generated widespread excitement across India, opening new opportunities for farmers, exporters, and industries.
.webp)
India intends to purchase energy, minerals, technology products and aircraft parts worth $500 billion from the US over the next five years, according to the joint statement issued earlier in the day by the two countries on an interim framework for a bilateral trade deal, which includes additional market access commitments and support for more resilient supply chains.
.webp)
The interim trade framework agreed between India and the United States has offered cautious relief to India’s auto and auto component exporters, even as several operational details remain unresolved.
The joint statement signals intent to lower trade frictions and improve market access, but industry bodies say clarity on tariffs, especially under the US’s national security provisions, is still awaited before the real impact can be assessed.
.webp)
.webp)
.webp)
.webp)
.webp)
