FX.co ★ Gold Rises Toward Record High

Gold surged to approximately $3,550 per ounce on Friday, approaching record highs and poised for a weekly increase of over 3%. This upward trend is fueled by expectations of reduced US interest rates and a heightened demand for safe-haven investments. The market has largely anticipated a rate cut in September due to a decline in job openings, layoffs surpassing expectations, and initial jobless claims hitting a two-month peak. Traders are now forecasting up to three rate cuts within the year, which would be advantageous for gold, as lower interest rates decrease the opportunity cost of holding assets that do not yield returns. Investors are keenly anticipating the release of the US nonfarm payrolls report for a comprehensive assessment of labor market conditions. Concurrently, geopolitical tensions, economic uncertainties—including President Trump's actions which have sparked concerns about the Federal Reserve's independence—and global trade issues are increasing the appeal of safe-haven assets. Stephen Miran is expected to join the Federal Open Market Committee (FOMC), and prospective candidates for next year's Chair have expressed dovish views that resonate with Trump's outlook.