Gold prices surged to a record on Friday, lifted by a weaker-than-expected U.S. jobs report that reinforced expectations of a Federal Reserve rate cut later this month.
Spot gold rose 1.0% to $3,581.07 per ounce, while December futures climbed 0.9% to $3,637.42 by mid-morning in New York. Prices eclipsed the previous record of $3,578.80, set earlier this week.
The August nonfarm payrolls report revealed just 22,000 new jobs, far below economists’ forecasts. Combined with softer jobless claims and private hiring data, the numbers highlighted a cooling labor market, strengthening the case for monetary easing.
According to CME’s FedWatch Tool, traders are now assigning a near-100% probability that the Fed will reduce interest rates by 25 basis points at its September 16–17 meeting.
Safe-Haven Demand Strengthens
Beyond the jobs data, bullion’s appeal was bolstered by mounting concerns over fiscal stability and global trade policy. Rising sovereign bond yields, driven by ballooning government debt in advanced economies, have heightened investor anxiety.
Uncertainty also lingered over potential legal challenges to sweeping U.S. tariffs and debates around the Fed’s independence—factors that drove demand for safe-haven assets.
- Investors shifted capital from the U.S. dollar, pushing the greenback lower.
- Gold registered a third consecutive weekly gain, underscoring its renewed role as a defensive hedge.
- Heightened geopolitical risk further fueled appetite for precious metals.
Broader Metals Rally
Gold’s rally extended to the wider metals market. Platinum advanced 0.9% to $1,388.13 an ounce, while silver climbed 1.5% to $41.27. Both were also on track for solid weekly gains.
For traders, the current environment suggests that momentum could continue if the Fed follows through with a September rate cut. With investors recalibrating expectations for U.S. monetary policy, gold’s trajectory remains tied to both the pace of economic slowdown and the strength of inflationary pressures.
As the labor market shows cracks, the metal’s record-setting performance reinforces its reputation as a reliable barometer of investor caution.