Gold Prices Surge to One-Month High on Soft US Jobs Data
Gold prices continued to climb on Friday, July 5, reaching their highest level in a month as key US jobs data revealed a slowdown in the labor market. This development has fueled expectations of an interest rate cut by the US Federal Reserve in September.
### Market Performance
Spot gold saw a 1.1% increase, reaching $2,380.91 per ounce, while US gold futures rose by 0.8% to $2,389.10. Additionally, spot silver surged by 2.3% to $31.10 per ounce, marking its best week since May 17. Platinum also experienced a three percent rise to $1,032.25 per ounce, and palladium gained 0.8% to $1,025.75.
Insight: The increase in gold prices can be attributed to market participants anticipating a dovish stance from the Fed due to weaker economic data, which typically boosts demand for safe-haven assets like gold.
### Factors Driving Gold’s Rally
Analysts have pointed out that gold is climbing to one-month highs as lower payroll revisions and a rise in the unemployment rate are reinforcing expectations of a rate cut in September. If the Fed hints at a rate cut openly, bulls are eyeing a return to the all-time high of $2,450.
Insight: The uncertainty surrounding the global economic outlook and trade tensions are also playing a role in pushing investors towards gold as a safe-haven asset.
### Market Projection
According to analysts, there is a growing belief among traders that the Federal Reserve will cut interest rates by the end of the year following disappointing US economic data. Swaps traders are currently pricing in a 70% chance of a rate cut in September. The support level for gold is expected at ₹72,100, with resistance at ₹73,100.
Insight: The bullish momentum in gold and silver is anticipated to continue in the upcoming sessions, with gold having support at $2,342-$2,326 and resistance at $2,378-$2,391. Silver is projected to have support at $30.28-$30.10 and resistance at $30.74-$30.92.
### Conclusion
As gold prices reach a one-month high driven by soft US jobs data and rate cut expectations, investors are closely monitoring market conditions and the Federal Reserve’s stance. It is crucial for investors to seek advice from certified experts and stay informed about changing market dynamics before making investment decisions.
