Gold prices surged 3.4% this week, with bullish sentiment running high. Traders are all eyes on Friday's US non-farm payroll report, hoping to find clues about the Federal Reserve's interest rate policy this year.

Soojin Kim, an analyst at Mitsubishi UFJ Financial Group, pointed out that the market is now most concerned with the December employment data. Expectations suggest an interesting scenario—job growth remains steady, while the unemployment rate stays low. This seemingly contradictory combination could further dampen the Fed's urgency to restart rate cuts.

In addition to employment data, traders are also watching for personnel changes at the Federal Reserve. Treasury Secretary Bessant recently stated that President Trump is expected to officially announce Powell's successor later this month. This change involves a re-pricing of future monetary policy directions, and the market is currently filled with various speculations about policy orientation. Throughout January, the performance of risk assets may be influenced by these macro factors.