Gold keeps soaring to unprecedented levels amid anticipation of jobs data in America

Gold prices rose to a record level on Thursday, amid Federal Reserve officials confirming their expectations to cut interest rates in 2024, in addition to anticipating job data in the United States.

According to Reuters, gold settled in spot transactions at $2,299.28 per ounce by 0343 GMT, after rising to an unprecedented level of $2,304.09 earlier in the session. Gold prices continue to record record levels in every session since last Thursday.

US gold futures increased 0.2% to $2,318.70.

Michael Langford, chief investment officer at Scorpion Minerals, said, “What is pushing the price of gold to rise is the decline in the value of currencies globally against the dollar for a variety of reasons… and people are accepting gold as a means of protection against the decline of currencies locally.”

Federal Reserve officials, including Bank Chairman Jerome Powell, continued to focus yesterday, Wednesday, on the need for more discussions and data before cutting interest rates, a step that financial markets expect to occur in June.

The US jobs report for March is due on Friday, with new inflation data due next week.

“If non-farm payrolls are in line with expectations or worse than expectations in terms of a weak labor market, this will be positive for the possibility of lowering interest rates, which in turn will be positive for gold,” Langford explained.

Lowering interest rates reduces the opportunity cost of holding bullion.

As for other precious metals, silver fell in spot transactions 0.5% to $27.08 per ounce, platinum fell 0.1% to $935.39, while palladium rose 0.4% to $1,017.83.