Gold continued its surge, closing above the $2,000 an ounce threshold for the first time since March 2022, fueled by a weakening dollar, increasing haven investments, and speculation that the aggressive monetary tightening in the US may be coming to an end.
Data released on Tuesday revealed that job vacancies at US employers in February dropped to their lowest level since May 2021, raising concerns about a potential recession in the world’s largest economy.
This, in turn, has increased the likelihood that the Federal Reserve will further ease its rate-hike cycle, providing a boost to non-interest-yielding bullion.
“The gold price is primarily now being driven by concerns about the US dollar,” said David Lennox, an analyst at Sydney-based Fat Prophets. He added that there is little in the economic factors to support the currency, while bullion also benefits from a “safe haven premium” due to financial concerns such as the recent banking crisis and geopolitical tensions.
The recently published Job Openings and Labor Turnover Survey (JOLTS) data preceded Friday’s monthly jobs report, which will be closely scrutinized for additional signs of a slowing US economy.
Spot gold was stable at $2,021.05 an ounce as of 9:50 a.m. in Singapore, following a 1.8% increase in the previous session. Concurrently, the Bloomberg Dollar Spot Index experienced a third day of easing. Silver saw a slight uptick after a 4.3% surge on Tuesday, while platinum also rose, and palladium experienced a decline.
Gold’s sustained momentum at its 13-month high could potentially lead to a retest of its record price of $2,075.47, reached in August 2020, as investors seek safer alternatives amid mounting economic and geopolitical concerns.
Disclaimer
For paid/sponsored articles, FintechMode neither endorses nor takes responsibility for the accuracy, timeliness, quality, and content of said articles. The statements, views and opinions expressed in paid/sponsored articles are solely those of the content provider and readers are reminded that Cryptocurrency products are unregulated in most locations and can be highly risky. Do your own research and consult relevant financial experts before making any investment decisions. FintechMode will not be held accountable, either directly or indirectly, for any harm or loss that may stem from or be linked to the usage or reliance on any information, goods, or services mentioned on this page. If you have any concerns, please email [email protected] or refer to our Terms & Conditions
