Gold prices reach new high amid dollar’s global slide

SANAA, Nov. 07 (YPA) – Gold prices saw a notable rise on Friday fueled by growing expectations for further US interest rate cuts later this year, alongside persistent economic concerns related to the ongoing US government shutdown.

The rise in the precious metal comes amid a decline in the value of the US dollar, which was weakened by private sector reports indicating a softening US labor market. This further bolstered predictions of another rate cut by the Federal Reserve.

Price Performance

The spot gold climbed by 0.4% to reach $3,994.03 per ounce. However, it is still heading for a weekly loss of 0.3%.

The US gold futures rose by 0.3% to settle at $4,004.40 per ounce.

It is worth noting that despite today’s gain, the price of gold has fallen by nearly 8% since hitting its all-time high of $4,381.21 on October 20.

Other Precious Metals

The performance of other precious metals was mixed:

Silver: Rose in spot transactions by 0.7% to $48.31 per ounce, but is heading for a weekly loss of 0.7%.

Platinum: Declined by 0.4% to $1,534.21 and is set for a weekly drop of about 2%.

Palladium: Increased by 0.3% to $1,379.33 and is heading for a weekly gain of 0.5%.

Economic Context

Data released yesterday, Thursday, supported the outlook for a weaker labor market, showing that the US economy lost jobs in October, particularly in the government and retail sectors. Additionally, corporate cost-cutting measures and the adoption of Artificial Intelligence contributed to an increase in announced layoffs. A weak labor market is typically a key catalyst for increasing the likelihood of interest rate cuts.

YPA