Global spot gold prices surged by 91 USD to 5,172 USD an ounce on 6/3, reversing the trend from the previous session. This significant increase occurred as the US announced a drop of 92,000 new jobs in February, pushing the unemployment rate up to 4.4%.
This labor market data strengthened expectations that the US Federal Reserve (Fed) would cut interest rates this year. Tai Wong, a precious metals trader, noted, "The sharp drop in private sector jobs, coupled with high wage growth, raised concerns about slow growth and high inflation."
Despite the daily gains, gold prices fell by 2.4% overall for the week, marking the first weekly decline for the precious metal in over a month. Gold's weekly decline was also attributed to a stronger USD. The greenback recorded its strongest weekly gain in over a year, driven by increased safe-haven demand due to the Middle East conflict. A stronger US dollar makes gold more expensive for buyers using other currencies.
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Global gold prices reversed course to increase on 6/3. Chart: Kitco |
Global gold prices reversed course to increase on 6/3. Chart: Kitco
In the energy market, prices for the two main global crude oil benchmarks both surpassed the 90 USD a barrel mark in the weekend session. Brent crude rose by 8.5% to 92.7 USD a barrel, while US WTI crude increased by 12.2% to 90.9 USD.
Oil prices accelerated throughout the week due to the Middle East conflict disrupting global supply chains. This also marked the second consecutive session where WTI recorded a more significant gain than Brent. Giovanni Staunovo, an analyst at UBS, explained, "Refineries and traders are seeking alternative supplies, and the US is currently the largest oil producer."
Brent oil experienced its strongest weekly increase since early 2020, when the pandemic emerged. In a 6/3 interview with the Financial Times, Qatar's Energy Minister Saad Sherida al-Kaabi warned that the conflict could lead to all oil-producing nations in the Gulf region halting exports in the coming weeks, potentially pushing oil prices to 150 USD a barrel.
Ha Thu (according to Reuters, CNBC)
