On September 9, gold prices set a new record, surpassing $3,600 per ounce for the first time. reports Reuters.
The market reacted to weak employment data in the US, which strengthened expectations of a rate cut by the Federal Reserve as early as next week. Traders currently put the odds of a quarter-point rate cut in September at 88%, and a bigger cut of 50 basis points at around 12%.
The spot price of gold rose by 1.3% to $3,634.25 per ounce. The price of bullion reached a record 3,646.29 dollars. US gold futures for December delivery rose 0.7% to $3,677.4. Since the beginning of the year, the price of bullion has increased by about 37%, continuing last year’s increase of 27%.
Factors for this movement were the weakening of the dollar, active purchases by central banks, soft monetary policy and geopolitical and economic uncertainty. The precious metal may continue to rally towards $3,700-$3,730 in the near term, and any short-term market pullbacks are likely to be seen as buying opportunities.
“A significant part of the demand comes from purchases by central banks”, – Swissquote analyst Carlo Alberto De Casa described the situation.
According to him, the People’s Bank of China continued its gold buying streak for the 10th month in a row in August, according to published official data.
