Gold Hits Another Record — 5K in Sight?
Gold hit a new record high of around $3,604/oz on Monday heading into the European session, boosted by a weaker-than-expected US employment report. The data sparked a surge in bets on the Fed cutting interest rates—nearly three this year—thus increasing the appeal of non-yielding bullion.
However, market optimism will soon be tested: revised US employment data on Tuesday, followed by producer and consumer inflation on Wednesday-Thursday, and auctions of 3-, 10-, and 30-year notes. These results could determine the direction of Treasury yields, the dollar, and the continuation of gold's rally.
In the broader context, demand for hedge funds remains strong amid geopolitical and economic risks. Recent political pressure on the Fed's independence—including legal issues surrounding Governor Lisa Cook—adds to uncertainty; Goldman Sachs believes gold could potentially approach $5,000 if the Fed's independence is compromised and flows shift from Treasuries to gold. The US also officially exempted gold bullion from country-based tariffs, easing market confusion.
On the physical fundamentals side, China's central bank added to its gold reserves for the 10th consecutive month in August. At 3:13 p.m. Singapore time, spot gold rose 0.5% to $3,604.70; the dollar index weakened slightly. Silver held steady, while palladium and platinum also strengthened. (ayu)
Source: Newsmaker.id
