Gold rebounds toward $5,000 ahead of US inflation

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Gold rebounded on Friday, recovering from a nearly one-week low in the previous session, as investors await key US inflation figures for cues on the direction of interest rates following robust jobs data. Spot gold was up 1.2 per cent at $4,979.49 per ounce as of 0814 GMT, and has gained 0.4 per cent so far this week. US gold futures for April delivery climbed 1 per cent to $4,998.30 per ounce. “With volatilities as heightened as they are and these big round levels offering ($5,000), you know, sort of indicators of where positioning might be, big breaks certainly accelerate these moves,” said Kyle Rodda, senior market analyst at Capital.com. Gold dropped about 3 per cent to a near one-week low on Thursday, breaking below the $5,000-an-ounce key support line as selling pressure intensified after an equities rout. “Precious metals came down with equities last night. They didn’t really have much of a macro catalyst,” Rodda said. Asian shares retreated from record highs on Friday as worries about shrinking margins in the tech sector hit the likes of Apple. The yellow metal also came under pressure after data released on Wednesday showed the US job market began 2026 on firmer footing than expected, reinforcing the view that policymakers may keep rates elevated for longer. The US consumer price index data is expected later in the day. Markets are pricing in two 25-basis-point cuts this year, the first of those expected in June. Non-yielding bullion tends to do well in low-interest-rate environments. Elsewhere, gold flipped to a discount in India this week for the first time in a month on subdued demand as volatile prices deterred buying, while the Chinese market saw robust demand as it heads into the Lunar New Year holiday. Spot silver climbed 4.6 per cent to $78.59 per ounce, rebounding from an 11 per cent drop on Thursday, though it remained on track for a weekly gain of 0.7 per cent. Spot platinum added 1.7 per cent to $2,033.99 per ounce, while palladium rose 2.8 per cent to $1,661.97. Both metals were set to notch weekly losses. Read: Why gold and silver crashed, wiping out trillions