Closing the trading session on 3/9, the spot price of gold increased by 26 USD to 3,558 USD per ounce. This is the second consecutive session that the price has hit a new record high. During the session, the price of gold at one point neared 3,580 USD.
The market was supported after a report showed a weakening US labor market, reinforcing the likelihood of the Federal Reserve (Fed) cutting interest rates this month. In addition, global instability also pushed demand for safe havens higher.
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World gold prices have continuously increased in recent sessions. Graph: Kitco |
The US government announced that the number of job openings in July fell more than expected, to a 10-month low. Accordingly, the ratio of job openings to unemployed individuals was only 0.99, lower than 1.05 in June and also the first time it has fallen below 1 since 4/2021.
The price of gold has been trending upwards in recent days. Following this report, Fawad Razaqzada, market analyst at FOREX.com, expects the next target could be 3,600 USD.
The report further solidified the probability of the Fed cutting interest rates by 25 basis points in its mid-September meeting. The probability is currently at 98%, according to CME's FedWatch Tool.
Investors are now awaiting the number of jobless claims, to be released on 4/9, and the jobs report, to be released on 5/9.
Federal Reserve Governor Christopher Waller reiterated his call for an interest rate cut this month. He confirmed that the pace of rate cuts after the September meeting will depend on the economy's performance.
Fed Governor Lisa Cook this week also continued to oppose US President Donald Trump's dismissal of her. "Concerns about the Fed's independence are eroding confidence in US assets, leading investors to seek gold," analysts at Heraeus Metals said.
Peter Grant, metals strategist at Zaner Metals, believes there is still room for gold prices to rise. In the short to medium term, the price could reach 3,600-3,800 USD. "Technical charts suggest gold could hit 4,000 USD by the end of the first quarter of next year," he said.
Ha Thu (according to Kitco, Reuters)
