Gold Price News: Gold Closes in on $2,200 an Ounce Level
Gold prices extended their recent gains on Friday to cap a particularly bullish week in which prices notched up fresh all-time highs.
Prices rallied as high as $2,195 an ounce on Friday, although prices eased back to trade at around $2,180 an ounce later in the day. That compares with around $2,160 an ounce in late deals on Thursday.
Gold hits all-time high – KAU price $/g – from Kinesis Exchange
US unemployment figures released Friday came in at 3.9%, well above market expectations of 3.7%, and this contributed towards expectations that the US Fed will need to cut interest rates in the coming months – a supportive element for precious metals prices.
This followed US Fed Chair Jerome Powell’s comments on Wednesday and Thursday highlighting that US interest rates have likely peaked and that cuts are on the horizon, albeit that the central bank will need to see greater evidence that inflation levels are moving toward the targeted 2% before adjusting rates.
US non-farm payrolls figures released Friday showed a larger than expected increase in jobs in February. This would normally be expected to put downward pressure on gold prices as a safe-haven asset. However, the gold market shrugged off the latest figures, as bullish momentum continued as the markets bet on a more dovish monetary policy emerging from the US Fed before the summer.
In addition, the US dollar continued to slide against other major currencies through the week, providing a lift for dollar-denominated gold.
Looking ahead, Monday is looking light on significant data releases and the markets will be looking ahead to Tuesday’s US monthly inflation figures for further insight into the future path for monetary policy.
Tim Moseley