Gold prices broke through an all-time high of over $4,600 during the week opened due to safe-haven demand and expectations of interest rate cuts.
This week, market players will take more cues from several inflation data such as the Consumer Price Index (CPI) to be published tomorrow (Tuesday)
At 10.15 am, gold prices were at $4,566, up 1.22% since it opened in early trading on Monday in the Asian session.
CNN reported on Sunday that US President Donald Trump is considering several military options against Iran following the bloody protests that erupted in the country.
According to the source, Trump is also considering the possibility of following through on his latest threat to attack the Iranian regime if the country’s authorities use deadly force against civilians.
In a related development, the United Kingdom (UK) and Germany are reportedly discussing plans to increase their military presence in Greenland. The move is intended to send a message to Trump that Europe is serious about ensuring security in the Arctic region.
This follows the detention of former Venezuelan President Nicolas Maduro by US forces last week. Uncertainty and heightened global geopolitical risks continue to drive demand for traditional safe-haven assets such as gold.
At the same time, a mixed US jobs report also raised market expectations for an interest rate cut by the US Federal Reserve (Fed), providing additional support for the yellow metal.
Lower interest rates typically reduce the opportunity cost of holding gold, making the asset more attractive even though it does not offer a yield.
According to the US Bureau of Labor Statistics (BLS), the Non-Farm Payrolls (NFP) Index rose by 50,000 in December, compared to 56,000 in November (revised from 64,000).
This reading was also below market expectations of 60,000. At the same time, the unemployment rate decreased to 4.4% in December, compared to 4.6% in the previous month, reflecting a still relatively stable labor market.
