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Gold prices were little changed in Asian trading on Friday as investors stayed on the sidelines ahead of the release of key US labour market data later in the day, while the metal remained on course for solid weekly gains supported by geopolitical risk.

Spot gold hovered near $4,474 an ounce in early trade, while US gold futures edged slightly lower. Despite the pause, bullion was set to post a weekly advance of more than 3%, following a sharp rally at the start of the week triggered by heightened tensions between the United States and Venezuela, including the capture of President Nicolas Maduro.

Dollar strength caps gains before data release

The upside in gold was tempered by a stronger US dollar, which recently touched a one-month high. A firmer dollar typically weighs on the metal by making it more expensive for buyers using other currencies.

Market participants are now focused on the US nonfarm payrolls report, which is expected to offer fresh insight into the health of the labour market and help shape expectations for the Federal Reserve’s next policy moves. The data could influence both the timing and scale of any future interest rate cuts, keeping traders cautious ahead of the release.

Traders are increasingly pricing in the possibility of two additional US rate cuts in 2026, following the Federal Reserve’s interest rate reduction in December. Lower borrowing costs generally support gold, which does not generate yield and tends to perform better when interest rates decline.

Geopolitics underpin safe-haven demand

Ongoing tensions between Washington and Caracas have continued to underpin demand for safe-haven assets. While prices consolidated after the early-week surge, the prospect of a prolonged geopolitical standoff remains a supportive factor for bullion.

Political developments in the United States also stayed in focus, after the US Senate voted to advance measures aimed at limiting further military action in Venezuela. President Donald Trump, however, said US oversight of the situation could extend for years, highlighting the risk of sustained uncertainty that may continue to benefit gold.

Broader metals complex advances

Elsewhere in metals markets, prices were mostly higher on Friday. Silver and platinum both edged up, while palladium surged sharply. Copper futures also advanced on both the London Metal Exchange and in the United States, pointing to broader strength across the metals complex.

Glencore (LSE:GLEN) has confirmed it is in early-stage discussions with rival Rio Tinto (LSE:RIO) regarding a potential combination involving part or all of their respective businesses.

Glencore said the talks remain preliminary and highly uncertain, with no assurance that a transaction will proceed or that agreement will be reached on structure or valuation. One possible outcome under consideration could be an all-share transaction implemented via a UK court-approved scheme of arrangement, under which Rio Tinto would acquire Glencore.

Under the UK Takeover Code, the confirmation of discussions triggers a formal timetable. Rio Tinto is required to either announce a firm intention to make an offer or confirm that it does not intend to proceed by 5 February 2026. The process places increased focus on the coming weeks and activates disclosure obligations for investors holding significant interests in either company.

From a market perspective, the announcement has drawn attention to the contrasting financial profiles of the two groups. Glencore continues to benefit from strategic initiatives and shareholder return policies, supported by positive management commentary and technical momentum, although profitability and cash flow pressures remain a constraint. Rio Tinto, by contrast, enters the discussions with a strong balance sheet, solid cash generation, and a track record of disciplined capital management, alongside supportive technical indicators despite some near-term overbought signals.

More about Glencore

Glencore is a global diversified natural resources group active in the production, marketing, and trading of commodities. Its portfolio spans metals and minerals, energy products, and agricultural goods, giving it broad exposure across global commodity markets. The company’s shares are listed on the London Stock Exchange, with a secondary listing in Johannesburg.

More about Rio Tinto

Rio Tinto is a global mining and metals company producing commodities including iron ore, aluminium, copper, and other critical minerals used in industrial and infrastructure applications worldwide. The group operates a dual-listed company structure through listings in London and Australia, providing access to international capital markets and a geographically diversified shareholder base.

J Sainsbury plc (LSE:SBRY) reported a strong third-quarter trading performance for the 13 weeks to 3 January 2026, supported by continued grocery-led growth and another year of Christmas market share gains.

Total retail sales excluding fuel rose 3.9% year on year, with like-for-like sales up 3.4%. Grocery sales increased 5.4%, marking a sixth consecutive year of Christmas market share growth, while sales in general merchandise and at Argos declined modestly over the period.

The retailer said demand was driven by strong fresh food sales, robust performance from its premium Taste the Difference range, and record trading in convenience stores. Online grocery sales grew 14%, supported by the group’s Nectar-linked value proposition, which helped attract more customers and lift average basket sizes during the peak festive season.

Management said continued investment in value, quality, and service under its Next Level strategy is sustaining competitive momentum. As a result, Sainsbury’s reaffirmed guidance for retail underlying operating profit of more than £1 billion for the year and upgraded free cash flow expectations to above £550 million. The group also reiterated plans to return more than £800 million to shareholders.

Progress was also reported across strategic initiatives, including growth in the Nectar360 retail media business and ongoing transformation at Argos. Disciplined stock management and continued expansion of food retail space are expected to help the group consolidate share in a subdued general merchandise market while improving returns for investors and brand partners.

Overall, Sainsbury’s outlook remains supported by solid operating performance and shareholder-focused actions. However, valuation levels and mixed technical indicators suggest some caution, with regulatory cost pressures and broader market challenges continuing to feature in the investment backdrop.

More about J Sainsbury plc

J Sainsbury plc is one of the UK’s largest food-led retailers, operating Sainsbury’s supermarkets and convenience stores alongside Argos and the Tu clothing brand. The group serves value-conscious consumers with a broad grocery offering, premium own-label ranges such as Taste the Difference, and a growing online grocery business, underpinned by its Nectar loyalty scheme and retail media platform.