Gold extended its daily rise above $2,650 at the end of Thursday's trading after the 2025 New Year's holiday.
The precious yellow metal strengthened as its safe-haven appeal improved with investors focusing on President Donald Trump's aggressive policies that will take office on January 20.
At 9.40 am, gold prices were at $2,657.60, stable since it opened early Friday in Asian trading.
Donald Trump's upcoming policies such as high import tariffs on foreign countries and low taxes on his own citizens could affect the value of gold.
Higher import tariffs would lead to a potential global trade war and lower taxes would increase inflationary pressures in the United States (US).
Gold tends to perform better amid economic uncertainty as a safe bet and higher price pressures, as investors use the precious metal as a hedge against inflation.
Meanwhile, the US dollar also rose sharply as investors expected high inflation under the Trump administration and dragged the Federal Reserve (Fed) into implementing moderate policy easing.
On the economic front, fewer US Initial Jobless Claims for the week ending December 27 also strengthened the USD.
In addition, the Labor Department reported that individuals claiming unemployment benefits for the first time were 211,000, lower than the estimate of 222,000 and a release of 220,000 previously.
