Gold increased by over 1% on Thursday, remaining close to one-week highs, as geopolitical and economic tensions persisted in supporting prices, with silver and palladium also experiencing gains. Spot gold increased by 1.1% to $5,016.89 per ounce, as of 0039. Bullion reached an unprecedented peak of $5,594.82 last Thursday. U.S. gold futures for April delivery increased by 1.8%, reaching $5,036.80 per ounce. On the geopolitical front, Iran and the U.S. have reached an agreement to engage in discussions in Oman on Friday, according to officials from both parties. This development occurs amidst ongoing disagreements, with Washington insisting that the negotiations encompass Tehran’s missile arsenal, while Iran maintains that the discussions should be limited to its nuclear programme.

In January, U.S. private payrolls experienced an increase of merely 22,000, significantly underperforming relative to the anticipated rise of 48,000, as reported. Weakness in the labour market generally bolsters the argument for interest rate reductions intended to foster job creation. U.S. President Donald Trump stated on Wednesday that there is “not much” doubt in his mind regarding a potential reduction in benchmark U.S. interest rates by the Federal Reserve. Meanwhile, Treasury Secretary Bessent expressed that he holds no opinion on the president’s constitutional authority to dismiss a Federal Reserve chair or board member.

Meanwhile, the U.S. Supreme Court is deliberating on Trump’s attempt to oust Fed Governor Lisa Cook, who indicated that current policy rates are only mildly restrictive and expressed a preference for a cautious approach before implementing further interest-rate reductions. Market participants anticipate a minimum of two reductions in the Federal Reserve’s interest rates in 2026. They will closely monitor the Job Openings and Labor Turnover Survey report for December, which is set to be released later today, having been postponed from its original schedule on Tuesday due to a partial government shutdown.

Non-yielding bullion typically exhibits superior performance in environments characterized by low interest rates. Spot silver experienced an increase of 2.1%, reaching a price of $89.88 per ounce. It reached an unprecedented level of $121.64 last week. Spot platinum increased by 2.1% to $2,272.55 per ounce following its peak of $2,918.80 on January 26, whereas palladium rose by 0.7% to $1,787.55.