Gold Hits New Record High After Weak US Jobs Data
Gold prices hit a new record high on Friday after a weak US jobs report reinforced expectations of a Federal Reserve interest rate cut, fueling renewed momentum for bullion's rapid rally.
Spot gold rose 0.9% to $3,577.33 an ounce, as of 12:34 p.m. GMT. Prices hit a record high of $3,582.71 and are up 3.7% for the week. US gold futures for December delivery rose 0.9% to $3,637.00.
Data showed that US job growth weakened sharply in August while the unemployment rate rose to 4.3%, confirming weakening labor market conditions and strengthening the case for a Federal Reserve interest rate cut this month.
Gold bullion, which pays no interest, tends to shine when interest rates are low and uncertainty is high, making it a preferred asset for investors seeking a safe haven. China and India are the largest gold consumers. Physical demand for gold in these centers fell this week as prices hit record highs.
China's central bank's August gold reserves data, due on Sunday, won't reach September's record high, but may still provide further clarity on how central bank demand is being affected by high bullion prices.
Among other metals, spot silver rose 1% to $41.09 an ounce and is headed for its third straight weekly gain. Platinum rose 2.2% to $1,396.97, and palladium fell 0.2% to $1,125.44. (alg)
Source: Reuters
