Gold (XAUUSD) edged higher toward the $5,045 level during early Asian trading on Monday. The precious metal extended its rebound, supported by a softer US dollar and sustained buying interest from central banks. Market attention will turn to the delayed release of the US January employment report, scheduled for Wednesday.
Meanwhile, US Treasury Secretary Scott Bessent on Thursday declined to rule out the possibility of a criminal investigation into Kevin Warsh, President Donald Trump’s nominee for Federal Reserve Chair, should Warsh ultimately refuse to cut interest rates. Ongoing concerns over the Fed’s independence have continued to weigh on the Greenback, lending support to dollar-denominated commodities such as gold.
Nikkei surges to Record Highs as Japan’s PM Takaichi Wins Election
Japan’s ruling party, under the leadership of Prime Minister Sanae Takaichi, is set for a decisive victory in Sunday’s snap general election.
According to projections compiled by public broadcaster NHK, the coalition led by Takaichi’s Liberal Democratic Party (LDP) has secured 352 of the 465 seats in the House of Representatives, with the LDP itself winning an outright majority of 316 seats.
Japanese equities posted their strongest gains since April, after Prime Minister Sanae Takaichi’s historic victory in Sunday’s election fuelled expectations of increased government spending across key sectors.
The Nikkei 225 surged by as much as 5.7% to a fresh record high of 57,337.07 by 10 a.m. local time, while the broader Topix index climbed up to 3.4% to reach a new peak. Gains were led by technology and machinery stocks, with several semiconductor equipment manufacturers jumping more than 10%.
Key Symbols to Watch
XAUUSD | USDX | XAGUSD | SP500 | BTCUSD | ETHUSD
Upcoming Events
| Date | Currency | Event | Forecast | Previous | Analyst Remarks |
| 10 Feb | USD | Retail Sales | 0.40% | 0.60% | Weaker consumer activity could put pressure on Dollar |
| 11 Feb | USD | Average Hourly Earnings m/m | 0.30% | 0.30% | High wages would favour Warsh’s hawkish side |
| 11 Feb | USD | Non-Farm Employment Change | 70K | 50K | A strong beat could seal Gold’s fate below $5,000 |
| 11 Feb | USD | Unemployment Rate | 4.40% | 4.40% | Rising rate could reinforce a softer Fed tone |
| 13 Feb | USD | Core CPI | 0.30% | 0.20% | Higher inflation rate could resume rate hikes |
For a full view of upcoming economic events, check out VT Markets’ Economic Calendar.
Key Movements of the Week
Gold (XAUUSD)
- XAUUSD found strong support at the 4650 level.
- If bullish momentum holds, it could head toward the 5070 resistance level.
- A breakout of the 5070 resistance level could mean higher prices.
Silver (XAGUSD)
- XAGUSD found support at the 65 level.
- Buyers could be pushing Silver back to the 91 level.
- Upcoming NFP data is crucial for Silver’s movements.
U.S. Dollar Index (USDX)
- USDX surges past and has retested the 97.2 level.
- USDX fails trade higher than the 97.85 resistance level.
- 97.85 resistance level is crucial for USDX, upcoming CPI could decide USDX’s movements.
USDJPY
- USD/JPY rejects trading higher facing 157.600 resistance level
- USD/JPY currently trades above 156.000 support level
- If USD/JPY fails to hold above 156.000 it could seek for previous lows
Bitcoin (BTCUSD)
- Bitcoin traded below $60,000 but has quickly rebounded.
- The current $70,000 level is crucial for Bitcoin as it has failed to break it several times.
- Current condition for Bitcoin is still very bearish; it could still retest the $60,000 level.
Ethereum (ETHUSD)
- Ethereum traded to a low of $1750 but has rebounded above $2,000.
- Ethereum is testing the resistance level priced at $2,000.
- The next resistance level is priced at $2,400 if buyers strengthen.
Bottom Line
Expectations of deeper interest rate cuts by the US Federal Reserve in 2026, reinforced by signs of weakness in the US labour market, have emerged as another factor supporting the non-yielding yellow metal.
Meanwhile, the White House stated that diplomacy remains US President Donald Trump’s preferred approach in dealing with Iran, while cautioning that military options remain on the table.
This keeps geopolitical risks elevated and continues to underpin safe-haven demand for gold.
Further support comes from renewed US Dollar selling, which provides an additional lift to precious metals. However, expectations that incoming Fed Chair Kevin Warsh may adopt a less dovish stance could limit gold’s upside, suggesting some caution is warranted before positioning for further gains.
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