Gold retreats from fresh record highs as US Dollar firms after BLS job revision
Gold (XAU/USD) extended its record-breaking rally on Tuesday to a fresh all-time high near $3,675, marking the third straight day of gains before trimming part of its intraday gains. At the time of writing, the yellow metal is trading near $3,650, up nearly 0.50% on the day, edging lower after its surge into uncharted territory.
A broadly weaker US Dollar (USD) has amplified the rally, making Gold more attractive for overseas buyers. At the same time, a string of disappointing US labor market readings has strengthened bets that the Federal Reserve (Fed) will cut borrowing costs at its September 16-17 meeting. The prospect of easier monetary policy is also driving demand for bullion, keeping investors' appetite firmly supported.
Steady central bank purchases are adding another layer of support, as major reserve holders diversify away from the US Dollar. Also, concerns over global trade frictions linked to US tariffs, alongside broader geopolitical tensions, are bolstering safe-haven flows into Gold. Meanwhile, uncertainty over the Fed’s independence amid growing political pressure has heightened market anxiety. Altogether is helping to sustain demand for Gold amid broader risk aversion.
The rally found fresh fuel after the US Bureau of Labor Statistics (BLS) released its preliminary benchmark revision, showing payrolls were overstated by 911,000 jobs through March 2025. The sharp downward adjustment underlined that the labor market has been cooling more significantly than initially reported, lending weight to dovish Fed bets. However, with much of the weakness already priced in, Gold pared gains as the US Dollar rebounded on short-covering and Treasury yields ticked higher.
Source : Fxstreet
