Gold prices moved sharply higher at the start of the week, hovering around the $5,000-per-ounce level as a weakening U.S. dollar and anticipation of economic data reshaped investor expectations.
The rally followed a strong surge late last week and coincided with renewed demand for non-yielding assets amid shifting interest rate outlooks.
Market participants focused on upcoming U.S. jobs and inflation reports, which are expected to influence future Federal Reserve policy decisions.
Spot gold traded near $5,004 to $5,008 per ounce during the session, while U.S. gold futures for April delivery also extended gains.
Silver prices climbed further after a strong previous session, reinforcing broader momentum across precious metals.
The decline in the U.S. dollar played a central role in supporting gold prices, making dollar-denominated metals more attractive to overseas buyers.
The dollar fell to its lowest level since early February, amplifying buying interest near the closely watched $5,000 threshold.
Currency movements were also influenced by developments in Japan, where the yen strengthened following the election victory of Prime Minister Sanae Takaichi.
Analysts noted that short-term correlations between the dollar, gold, and silver contributed to the upward price movement.
Buying interest was described as returning at higher levels, with analysts pointing to bargain-hunting activity after recent volatility.
Attention has now shifted to a slate of U.S. economic indicators, including monthly employment figures and consumer price data due later this week.
Markets are currently pricing in at least two 25-basis-point interest rate cuts in 2026, with expectations centered on mid-year timing.
San Francisco Federal Reserve President Mary Daly said the U.S. labor market is in a "precarious" position, reinforcing sensitivity to incoming data.
Lower interest rate expectations have supported gold by reducing the opportunity cost of holding the non-yielding asset.
Beyond the United States, China’s central bank continued its gold purchases for a fifteenth consecutive month, highlighting ongoing diversification away from the dollar.
Meanwhile, silver outperformed gold as risk appetite strengthened, while platinum and palladium lagged amid concerns tied to industrial demand.