Gold prices edged higher on Friday, remaining close to the record high reached earlier in the week. The rise comes amid growing concerns about the weakness of the United States labour market, which has reinforced expectations for multiple interest rate cuts before year’s end. This anticipation has boosted demand for the precious metal.
Spot gold was up 0.5 per cent to $US3650.23 per ounce as of 7.27pm AEST, near its all-time high of $US3673.95 touched on Tuesday. Gold has gained 1.8 per cent last week, marking its fourth consecutive weekly gain. US gold futures for December delivery rose 0.4 per cent to $US3689.10.
US President Donald Trump reiterated his call on Wednesday for Federal Reserve chairman Jerome Powell to cut benchmark interest rates. Recent economic data shows that American consumer prices rose 0.4 per cent in August, the steepest monthly rise in seven months, while weekly jobless claims surged to their highest level since October 2021 last week. A recent Reuters poll indicated that nearly all of 107 economists expect the Fed to cut its key interest rate by a quarter of one percentage point on September 17. Non-yielding bullion traditionally performs well in low-interest-rate environments.
Gold prices have risen about 39 per cent so far this year, driven by a soft US dollar, strong central bank buying, dovish monetary policy, and heightened global uncertainty. Meanwhile, China is seeking public feedback on a proposal to streamline the licence system, making it easier to import and export gold and gold products.
