Gold has hit a new all-time high. The price of metal went up after a US job report that was weaker than expected made people think that the Federal Reserve would lower interest rates later this month.
On Friday, the precious metal rose more than 1%, reaching an all-time high of $3,586.82 an ounce. This continues a sharp rise that has been going on all week as people have been betting more on a rate drop. The rise came right after a major US payrolls report revealed a big drop in hiring and the jobless rate soared to its highest level since 2021.
When borrowing costs go down, people usually want to buy non-yielding assets like gold. Strong demand for safe havens has also helped the metal. This is because people are still worried about the future of the US central bank.
In the last three years, the prices of gold and silver have more than quadrupled. This is because geopolitical tensions, economic instability, and worries about global trade have made investors turn to precious metals for safety. President Donald Trump’s continued attacks on the Fed’s independence are a big reason why this is so uncertain. He has promised to get a “majority, very shortly” on the central bank to cut rates.
People who invest are also waiting for a big decision on whether Trump has the power to fire Fed Governor Lisa Cook. If he does, he might hire someone who is more dovish to take her place. Goldman Sachs Group Inc. analysts have said that gold could rise to around $5,000 an ounce if the Fed’s independence were to be threatened. This would cause investors to move even a tiny amount of their money from Treasuries to bullion.
At 1:57 p.m. in London, spot gold was up about 1% to $3,580.06 an ounce. This means it is on course for a 3.8% weekly gain, which would be its biggest since mid-June. The Bloomberg Dollar Spot Index dropped 0.6%, although Treasury rates went up.