With key reports on employment and inflation postponed, traders have increasingly turned to private data sources to gauge the health of the world’s largest economy. The uncertainty has reinforced expectations of a quarter-point interest rate cut by the US Federal Reserve later this month, a move that typically boosts gold since it does not pay interest.

Gold-backed exchange-traded funds (ETFs) also recorded renewed inflows last week, reflecting rising investor demand for the metal as a safe-haven asset.

Options traders have continued to bet on further gains, with fresh bullish positions in the SPDR Gold Shares ETF. One major trader sold $355 call options bought in late September, when gold prices were more than five per cent lower, and purchased $370 calls equivalent to more than 26 million shares, anticipating an additional 1.8 per cent rise by the end of next week.

Bullion’s advance this year has also been supported by large-scale central bank purchases, as several monetary authorities diversify reserves away from the US dollar. Investors have simultaneously channelled funds into other alternative assets such as silver and Bitcoin, a movement analysts have labelled the “debasement trade,” driven by fears over the weakening value of fiat currencies.

Ahmad Assiri, an analyst at Pepperstone Group Ltd, said, “The backdrop is intact with the Fed on path to cut rates further, alongside the weakening labour market.” However, he cautioned that “it feels like the risk-reward dynamics are shifting and a tactical pullback would be viewed as a healthy phase within an extended rally.”

As of Sunday afternoon trading in New York, gold stood at $3,970 per ounce, while the Bloomberg Dollar Spot Index gained 0.3 per cent. Silver, platinum and palladium also posted gains, tracking bullion’s strong momentum.