Gold touches record high by nearing $3600 per ounce as weak US jobs data fuels hopes of Fed rate cut

Gold prices hit a record high by touching $3600 per ounce, with a weak U.S. jobs data spiking expectations for a bullion-supportive rate cuts from the Federal Reserve. Spot gold was high by 1.4% at $3596.49 per ounce, having already hit a record of $3596.76 earlier. It is now on course for its most robust weekly gain in the past four months, with U.S. gold futures for December delivery rising by 1.3% to $3653.30.Bullion has shot up by 37% so far this year, driven by weakness of the U.S. dollar, central bank buying, and a softening monetary police backdrop.

Data also demonstrated that the U.S. job growth plummeted sharply in August, whereas the unemployment rate rose to 4.3%.

“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.”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.

Bullion tends to shine upon the lowering of rates and uncertainty being high, which makes it a go-to asset for safety-seeking investors. India and China are the topmost gold consumers, whereas physical demand for gold in these hubs has dropped due to record high rates.

August gold in reserves data from China’s central bank, due on Sunday, will not catch the September record highs, but may still provide more clarity on how demand from central banks was being affected by high bullion prices.