Gold Surges Above $5,000 While Awaiting U.S. Labor Market Insights

Gold prices topped the $5,000-per-ounce mark on Monday as the U.S. dollar weakened, providing an opportunity for investors to reassess interest rate prospects ahead of a crucial labor market report. Spot gold climbed 1.3% to $5,026.04, while U.S. gold futures for April saw a 1.4% increase to reach $5,046.10 per ounce.

Market experts, including KCM chief analyst Tim Waterer, noted that bargain-hunting, aided by the dollar's slump, has driven gold's resurgence. This trend was further fueled by the U.S. dollar reaching its lowest point since February 4, making dollar-priced metals more attractive to foreign buyers.

San Francisco Federal Reserve President Mary Daly hinted at potential interest rate cuts to mitigate labor market weaknesses. Investors are anticipating two 25-basis-point rate cuts in 2026, with the first possibly occurring in June. The awaited U.S. nonfarm payrolls data, delayed due to a government shutdown, is expected to provide additional insights into the Federal Reserve's policy trajectory.

In other metals, spot silver rose 4.3% after nearing a record high in the previous session, while platinum slightly declined and palladium saw a small gain.