Gold prices rose to another record high, after data showing a rise in the unemployment rate in the United States reinforced expectations that the US Federal Reserve may begin cutting interest rates soon.
Gold futures contracts achieved gains for the third week in a row, reaching more than 4% last week, and gold futures contracts for April delivery rose by approximately 0.95%, upon settlement, or about $20.3, to close at $2185.5 per ounce.
The US economy added 275,000 jobs in February, a higher level than analysts expected, while the unemployment rate rose.
According to data from the US Department of Labor, the January reading was revised down from 353 thousand to 124 thousand. December estimates were also lowered to 290,000 from 333,000.
The dollar index fell 0.1%, making gold cheaper for foreign buyers, while the yield on 10-year US Treasury bonds fell to the lowest level in more than a month.
Traders boosted their bets that the Fed could start cutting interest rates in May to around 30%, after the jobs report, although June remained the most likely scenario at 73%.
Gold began its record run on Tuesday, when it surpassed its December peak, supported primarily by increasing signs of cold price pressures and its traditional appeal as a safe haven.
Low interest rates support gold prices, because they reduce the opportunity cost of holding bullion.
Silver fell in spot transactions 0.3%, to $24.25, while platinum fell 0.9% to $910.10 per ounce, and palladium lost 1.8% to $1,015.50.
2024-03-09 16:31:58
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