Gold Hits Fresh Record as Markets Weigh Jobs Data, Fed Pivot
Gold resumed a rally to clinch a fresh all-time high, with markets still digesting the outlook for rates after the Federal Reserve this week kicked off its monetary-easing cycle.
Bullion jumped as much as 0.8% to $2,607.07 an ounce on Friday, with gains supported by dollar weakness spurred by the Fed's 50-basis-point cut on Wednesday. While that was seen as an aggressive start to its pivot to looser policy, Chair Jerome Powell said that the move was to ensure continued resilience in the US labor market and prevent further economic weakness.
Still, concerns about a slowdown persist after several major US companies - including FedEx and Skechers U.S.A. Inc. - issued warnings this week about misses and weak demand. Lower borrowing costs tend to aid gold, as it doesn't pay interest.
Bullion is up more than a quarter so far this year, with recent gains supported by the anticipation of Fed easing. Central-bank buying and haven demand due to conflicts in the Middle East and Ukraine have also helped, while interest from retail investors has picked up. Its strength in the first half was also fueled by strong demand from Asian consumers.
Spot gold was 0.7% higher to $2,603.56 an ounce as of 2:56 p.m. in Singapore, up 1% for the week. The Bloomberg Dollar Spot Index was down 0.1%, following a 0.3% decline in the previous session. Silver and platinum climbed, while palladium was flat.
Source : Bloomberg
