Gold prices are ending the week on a high following a massive show of strength with not one but two new price records.
On Tuesday, safe-haven demand following an increase in Middle East tensions pushed prices to £1,814 ($2,297). However, that high didn’t stand for very long. It has already been broken in fact, with a new all-time high of £1,821 ($2,325) set on Thursday.
This is the latest in a run of price highs over the course of the last five weeks as the bulls gather momentum ahead of the Federal Reserve’s rate cuts later in the summer. Prices have been boosted by safe-haven demand but are also being helped along by comments made by the Federal Reserve chairman, Jerome Powell.
Speaking to students at the Stanford Graduate School of Business earlier this week, he indicated that the Feds remain very much on course to begin rate cuts as expected, noting that they were focused on bringing inflation down to 2% but progress so far was positive.
Recent data points from the week support that expectation, with an unexpected uptick in unemployment claims and a slowdown in service industry growth.
More employment data to be released later today (Friday) could give gold a further boost if analyst expectations are missed. If the spike in unemployment claims is an indicator that the market is slowing, the data would heap more pressure on the Feds to begin their rate cutting cycle, giving gold yet more fuel for price gains.
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