Weaker U.S. Jobs Data and Cooling Inflation Fuel Investor Rush Into Safe-Haven Asset
Gold prices surged to a new record on Monday, driven by rising investor confidence that the United States Federal Reserve will extend interest rate cuts into next year.
The precious metal climbed to an intraday high of $4,383.76 during early trading, buoyed by recent economic data suggesting a slowdown in the US labour market alongside easing inflationary pressures. Analysts say the figures have strengthened expectations that the central bank has enough room to further loosen monetary policy.
The rally lifted gold above its previous record of $4,381.52, which was set in October, underscoring renewed demand for the metal as a hedge amid shifting monetary conditions.
Market watchers note that lower interest rates typically boost gold’s appeal, as the non-yielding asset becomes more attractive compared to interest-bearing investments.
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