Gold prices continued their upward trajectory on Thursday, building on a session where the metal reached a one-week high.
The rally was driven by a combination of softer-than-expected U.S. jobs data and declining oil prices, which together reinforced investor appetite for safe-haven assets.
Market participants are increasingly adjusting their expectations for U.S. monetary policy in light of the labor market softness, with many now pricing in a more dovish stance from the Federal Reserve.
The cross-asset dynamic is particularly notable, with lower oil prices providing additional support to gold.
As energy costs recede, the opportunity cost of holding non-yielding assets like gold diminishes, making the metal more attractive to investors seeking to hedge against economic uncertainty.
This inverse relationship between oil and gold has become a key theme in recent trading sessions, with both commodities reacting to shifting risk sentiment and macroeconomic data.