A new record level for gold prices in spot transactions.. What are the reasons?

2024-04-05 21:17:33
A new record level for gold prices in spot transactions.. What are the reasons? – AFP

Gold prices rose, during trading on Friday, April 5, to a new record high, due to a number of factors, including bets on lowering US interest rates, speculative purchases and central bank purchases, despite strong job growth in the United States during the month of March.

Gold gained 1.5% in instant transactions to $2,324.15 per ounce, following hitting a record level of $2,344.50 earlier in the session. Gold rose more than 4% since the beginning of the week and recorded gains for the third week in a row.

US gold futures rose 1.6% to $2,345.4 per ounce.

Chief market strategist at the American company Blue Line Futures, Philip Strebel, said that there are a lot of capital flows, and everyone is chasing the market rise, which helps gold prices, along with strong central bank purchases and speculative buying.

Read also: The US economy added 303,000 jobs in March, versus expectations of 212,000 jobs

Earlier today, the US Department of Labor said, in its employment report, that non-farm payrolls increased by 303,000 jobs last month. Economists polled by Reuters expected the addition of 200,000 jobs on average, with estimates ranging from 150,000 to 250,000.

US Federal Reserve Chairman Jerome Powell confirmed on Wednesday, April 3, that the central bank is in no hurry to reduce borrowing costs following leaving the interest rate unchanged in the current range between 5.25% and 5.50% at last month’s meeting.

Traders currently expect a roughly 59% chance that the Fed will cut interest rates in June.

Silver rose in spot transactions 1.4% to $27.30 per ounce. Platinum settled at $925.15. Both are on track to achieve a weekly rise.

Palladium fell 1.7% to $1,003.50 per ounce, and is heading toward a weekly decline.

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