Gold prices hit new record high, continue to gain for third week straight
Gold prices surged to achieve a fresh all-time high on Friday, propelled by various factors such as expectations of a U.S. interest rate cut, speculative purchasing, and central bank acquisitions, sustaining the ongoing upward momentum of bullion despite robust job growth in the United States during March.
As of 10:57 a.m. EDT (1456 GMT), spot gold climbed by 1.3% to $2,320.04 per ounce, reaching a peak of $2,324.79 earlier in the trading session. This marks a 3.8% increase for the week, positioning it for a third consecutive weekly advance. Meanwhile, U.S. gold futures saw a 1.4% uptick, settling at $2,339.70, according to Reuters.
“Gold and silver closed on a mixed note, after both precious metals hit fresh lifetime highs in the domestic market. Silver fell after reaching its highest level since June 2021, as investors awaited the important US employment data for fresh indications regarding the Fed’s monetary easing. Gold and silver are also getting support due to escalating tensions in the middle-east. The dollar index also slipped below 104 marks amid Fed rate cut hopes which supported prices of precious metals,” said Rahul Kalantri, VP Commodities, Mehta Equities Ltd.
The Labor Department reported a rise of 303,000 jobs in nonfarm payrolls last month, exceeding economists’ expectations. In a survey conducted by Reuters, economists had anticipated 200,000 jobs, with estimates spanning from 150,000 to 250,000.
Fed Chair Jerome Powell reaffirmed on Wednesday that the central bank wasn’t hastily considering a reduction in borrowing costs. This statement followed the recent decision to maintain the policy rate within the range of 5.25% to 5.50%.
Silver prices increased by 1.4% reaching $27.30 per ounce, while platinum remained stable at $925.15. Both metals were poised for a weekly uptick.
Meanwhile, palladium experienced a 1.7% decrease, dropping to $1,003.50 per ounce and was set for a weekly downturn.
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Published: 05 Apr 2024, 11:00 PM IST
