World gold prices continue record increase

The US jobs report pushed gold prices to a new historical peak, reaching $2,194 in the session on March 8.

At the end of the weekend trading session, the world spot gold price increased by 31 USD to 2,178 USD per ounce. During the session, the price reached 2,194 USD - the highest in history. Yesterday was also the 4th consecutive session that the precious metal set a new peak.

Since the beginning of the week, prices have increased by more than 3%. This is the strongest weekly increase of gold since mid-October 2023.

Prices jumped after the US released its February jobs report, which showed the unemployment rate rising and wage growth slowing, although job creation remained robust.

World gold prices have continuously increased in the past few sessions. Chart: Goldprice

"This report puts pressure on the USD and reinforces expectations of a Fed rate cut this year," said David Meger, director of precious metals trading at High Ridge Futures. These are all factors that are beneficial for gold.

A weaker dollar will make gold cheaper for non-U.S. buyers. The yield on the 10-year U.S. government bond also fell to its lowest in more than a month.

Currently, the CME FedWatch interest rate tracker shows that investors are betting on a 73% chance of a Fed rate cut starting in June. However, the probability of a rate cut starting in May has also inched up to 30%.

The world gold price has started a record-breaking streak of increases since the beginning of this week. The main reason is signs that inflationary pressures have eased, leading to expectations that the Fed will cut interest rates this year. In two hearings before the US House of Representatives and the US Senate this week, Fed Chairman Jerome Powell made statements hinting at the possibility of interest rate cuts.

"The jobs report further increases investors' bets that the Fed will adjust policy in June. The overall market trend remains bullish, although there may be short-term corrections," Tai Wong, a precious metals investor in New York, predicted.

Ha Thu (according to Reuters, Goldprice)

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