Gold Climbs Back Toward $5,000 as Dollar Weakens

Gold prices rebounded toward the $5,045 area in early Asian trading, extending gains as the US dollar softened and central bank demand remained firm. Market focus is now firmly on the delayed release of the US January nonfarm payrolls report, which could shape expectations around the Federal Reserve’s policy path and balance sheet expansion plans.

Concerns over the Fed’s independence have also weighed on the Greenback after comments from US Treasury Secretary Scott Bessent kept political risk in focus. These developments have supported dollar-denominated assets, with gold benefiting from both macro uncertainty and renewed defensive positioning.

Meanwhile, Japan’s political landscape delivered a major shock to currency markets. The yen weakened sharply after Prime Minister Sanae Takaichi secured a landslide election victory, triggering a powerful rally in Japanese equities. The Nikkei surged to record highs on expectations of fiscal expansion, while currency weakness reinforced gold’s appeal as a hedge against volatility.

Read more on how NFP, Fed policy signals, and global political shifts are shaping gold’s next move.