Gold climbed to around $4,960 per ounce on Friday, rebounding after a drop of more than 3% in the previous session as markets contended with heightened volatility. Thursday’s decline came amid a broad-based selloff across financial markets, prompting investors to liquidate precious metals to raise cash. While no single trigger was clearly identified, simultaneous declines in equities and cryptocurrencies suggest a wider move toward risk aversion, potentially amplified by algorithmic and automated trading activity.
Attention now turns to US inflation data due later today, which could be pivotal for expectations around the Federal Reserve’s next policy decision. Stronger-than-anticipated January employment figures earlier this week have already pushed market pricing for a first interest rate cut back to July from June. Even so, persistent concerns about currency debasement, continued central bank gold purchases, and elevated geopolitical risks are helping to underpin demand for the metal. Despite Friday’s recovery, bullion remains on track for a modest weekly loss.
