GOLD PRICES extended their record-setting run on Friday as US employment figures strengthened expectations that the Federal Reserve could begin reducing interest rates later this year.
Spot gold traded approximately 0.5% higher at US$2,170.55 per ounce at 19:07 GMT, while US gold futures settled 0.9% higher at US$2,185.50, according to Reuters.
The employment report showed an increase in unemployment and slower wage growth, despite stronger job creation during February.
The US Dollar eased, while ten-year Treasury yields fell to their lowest level in more than a month. Both developments supported bullion by reducing its cost for overseas buyers and lowering the opportunity cost of holding an asset that pays no interest.
London’s afternoon gold benchmark also reached a record US$2,171.30 per troy ounce.
Silver moved differently during the session, easing approximately 0.3% to US$24.25 per ounce at the reporting point, although it remained on course for a weekly gain.
The rally leaves investors watching upcoming inflation figures for evidence that price pressures are easing sufficiently to allow the Fed to lower rates.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.