Spot gold prices hit an all-time high on Monday, reaching $3,600.46 per ounce, marking the first time in history the metal has crossed this level. The surge was driven by growing expectations of a U.S. Federal Reserve interest rate cut this month, following weaker-than-expected employment data last week.
اضافة اعلان
At 01:21 GMT, spot gold stood at $3,586.81 per ounce, after climbing to a record $3,599.89 on Friday.
Meanwhile, U.S. gold futures for December delivery fell by 0.7% to $3,626.10.
Kyle Rhoda, an analyst at Capital.com, said: “The main driver is U.S. employment data and expectations of a 50-basis-point rate cut in September. It’s a slim chance, but it represents a significant shift compared to before the jobs report.”
He added: “Overall, all factors are currently pushing gold higher. Even with a surprise in this week’s inflation data, the $3,600 level will be a key test.”
U.S. job growth slowed sharply in August, with the unemployment rate climbing to 4.3%, its highest level in nearly four years, reinforcing signs of a cooling labor market and boosting expectations of Fed rate cuts next week.
Markets are currently pricing in a 25-basis-point cut this month, with an 8% chance of a larger 50-basis-point cut, according to CME’s FedWatch tool.
Lower interest rates reduce the opportunity cost of holding gold and weaken the U.S. dollar, making gold cheaper for investors holding other currencies.
Attention is now focused on Thursday’s U.S. inflation report, which could provide further clarity on the Fed’s likely rate move.
So far this year, gold has risen 37%, following a 27% gain in 2024, supported by a weaker dollar, central bank purchases, looser monetary policy, and prevailing geopolitical and economic uncertainty.
China’s central bank added gold to its reserves in August, extending its buying streak for the tenth consecutive month.
Meanwhile, gold traders increased their net long positions by 20,740 contracts to 168,862 contracts in the week ending September 2.
As for other precious metals, silver fell 0.5% to $40.75 per ounce, platinum rose 0.1% to $1,374.35, while palladium remained unchanged at $1,109.71.
(Agencies)
