Gold Soars! Signals of a US Interest Rate Cut and Iran Turmoil Heat Up the Market
Gold prices surged again after US jobs data signaled that interest rates might be cut again. Gold bullion rose above US$4,530 per ounce, approaching the record high set at the end of last December. This increase immediately attracted the attention of global market players.
The latest US jobs report showed weaker-than-expected job growth. This condition strengthens confidence that the Federal Reserve will continue to lower interest rates to maintain economic stability. When interest rates fall, gold becomes more attractive because it does not pay interest but tends to appreciate in value.
The financial market now expects at least two more interest rate cuts this year, following the Fed's three consecutive cuts in the second half of last year. This expectation has made investors increasingly aggressively invest in gold as a hedge.
On the other hand, geopolitical tensions have also boosted gold prices. The increasingly deadly protests in Iran have heightened global market concerns. This situation has again led to a rush for gold as a safe-haven asset, as it is seen as a potential hedge against global uncertainty. (az)
Source: Newsmaker.id
