Gold price makes new high, within touching distance of $3,600

[Ben Graham]

Gold blasted to a new all-time high of near $3,600 an ounce on Friday, as fresh US jobs data further cemented market-wide expectations for a Federal Reserve rate cut later this month.

Spot prices jumped as much as 1.4% to a record $3,597.80 per ounce, surpassing its previous high of $3,670 set only two days earlier. The precious metal is now on track for a 4% weekly close.

US gold futures posted similar gains, with the most active contract crossing the $3,650-an-ounce mark for the first time.

Click on chart for live prices.

Gold’s new record-setting move came as a pivotal US payrolls report on Friday showed a slowdown in hiring last month, while unemployment rose to the highest level since 2021, confirming that labour market conditions in the world’s biggest economy are slumping.

Following the data, traders are now almost certain that the Fed will lower rates at its upcoming meeting on Sept. 17, with an 84% chance of it being a 25 basis-point cut and 16% chance of a more aggressive 50 basis-point cut.

“Gold makes new highs; bulls are looking at the clearly weakening trend of employment translating into multiple rate cuts,” said Tai Wong, an independent metals trader, in a note to Reuters.

With the latest move, the yellow metal has now risen by more than 36% this year, as mounting risks in geopolitics, the economy and global trade continue to drive safe haven demand.

“The outlook is undoubtedly bullish for gold as labour concerns override inflation for the short, probably medium term. However, I think we are still too far away from $4,000 unless there is a massive dislocation,” Wong added.

Fed drama fuels rally

Analysts also flagged concerns surrounding the Fed’s independence as a key factor in shaping gold’s trajectory – an issue thrust into the spotlight after US President Donald Trump attempted to fire Fed Governor Lisa Cook and repeatedly pressured the central bank to slash rates.

With that in mind, analysts at Goldman Sachs Group this week predicted that gold could realistically see $5,000 if Trump keeps attacking the Fed and succeeds in dictating its policies, which would erode investor confidence in dollar-denominated assets and bolster the appeal of bullion.

Gold price could see $5,000 if Trump keeps attacking Fed: Goldman Sachs

(With files from Reuters)