Precious metal has enjoyed meteoric gains underpinned by a flight to safety as markets sift through a mosaic of economic data.
Key Points:
- Gold hits a fresh all-time high of $2,330.
- Markets digest a flurry of economic data.
- Traders run to the safety of the yellow asset.
- Gold prices ripped on Friday and remained well-bid early Monday morning after investors reacted to the latest data dump out of the US. The job market is still running hot, the March nonfarm payrolls showed, with 303,000 new workers tapped to join the world’s biggest economy. Gold added more than 2.6% on Friday and blasted to a new record on Monday, hitting $2,353 per ounce.
- Gold has been performing superbly well lately. Over the past four to five weeks, the yellow metal has jumped a whopping 16%, adding more than $300 to its price tag. And that’s a mighty leap from an asset notorious for its languishing returns but solid reputation as a safe haven.
- Among the factors contributing to the rally are geopolitical tensions from the Middle East and a clouded outlook for bringing down inflation. Despite the hot jobs report, the Federal Reserve could still decide to dial back interest rates from their 24-year high. That, in turn, could potentially lead to even more inflation as lower borrowing costs make access to money easier.