Gold Prices Surge to Record High on US Jobs Data Boosting Rate Cut Bets
Gold Prices Reach New Highs
Gold prices soared to another record high on Friday following data indicating a rise in the U.S. unemployment rate, fueling expectations of an impending interest rate cut by the U.S. Federal Reserve.
Market Performance
Gold prices climbed by 0.5% to $2,170.55 per ounce by 2:07 p.m. ET (1907 GMT), with U.S. gold settling 0.9% higher at $2,185.50. This surge marked the largest weekly percentage increase since mid-October.
Factors at Play
Gold hit an all-time high of $2,185.19 after reports showed a rise in the U.S. unemployment rate alongside a moderation in wage gains despite accelerated job growth in February. Analysts attribute gold’s rally to expectations of Fed rate cuts and dollar weakness.
Market Dynamics
The weakening dollar made gold more affordable for foreign buyers, while the 10-year U.S. Treasury yield dropped to a one-month low. Traders increased bets on potential rate cuts by the Fed, with May seeing a 30% likelihood and June at 73%.
Record London Prices
London’s gold price benchmark hit a new high of $2171.30 per troy ounce during an afternoon auction on Friday, as reported by the London Bullion Market Association (LBMA).
Metal Trends
Spot silver decreased by 0.3% to $24.25, platinum fell by 0.9% to $910.10 per ounce, and palladium dropped by 1.8% to $1,015.50. Despite these declines, all three metals were on track for weekly gains.
