Onome Amuge
Gold rose to a fresh record on Friday after weaker-than-expected US employment figures strengthened expectations that the Federal Reserve will cut interest rates later this month.
Spot bullion climbed as much as 1.5 per cent to trade above $3,600 an ounce, extending a sharp rally this week that has been driven by speculation of looser US monetary policy and renewed haven demand. The move marks gold’s highest level on record and sets the stage for its strongest weekly close ever.
The gains came after US nonfarm payrolls showed a sharp slowdown in hiring and unemployment rose to its highest level since 2021. Traders now see increased odds of the Fed easing policy at its upcoming meeting, with lower borrowing costs typically boosting the appeal of non-yielding assets such as gold.
Momentum indicators suggest bullion could climb further in the short term, though analysts caution that the market appears stretched. A Fibonacci resistance zone between $3,664 and $3,668 is seen as the next technical barrier, while longer-term projections from chart patterns point to potential upside targets near $3,786 and $3,966.
Thursday’s brief pullback in prices was quickly reversed, underscoring strong underlying demand. Traders noted that the swift rebound has emboldened buyers, with many looking for opportunities to enter on any retracement.
The rally builds on last month’s record monthly close for gold and reflects broader macroeconomic concerns, including persistent uncertainty over the US economy and a weakening dollar.
