Gold surged to a new all-time high on Monday, fueled by growing investor confidence that the Federal Reserve will cut interest rates this year. The rally followed a weak U.S. jobs report that showed a slowdown in hiring and a rise in unemployment.
The spot price of gold climbed over 0.5% to exceed $3,604 an ounce, breaking the record set just days prior. The disappointing employment data led traders to significantly increase bets on the Fed cutting rates, with markets now pricing in nearly three reductions in 2024.
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The metal’s gains are also supported by strong safe-haven demand amid geopolitical tensions and concerns over the Fed’s independence. Former President Donald Trump’s recent attacks on the central bank have heightened these worries.
In related news, the Trump administration formally exempted gold bullion from country-based tariffs on Friday, clarifying a previous ruling that had caused market confusion. Meanwhile, data showed China’s central bank added gold to its reserves for a tenth consecutive month in August.
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