Gold continued its record rally on Wednesday, supported by weak economic data that strengthened expectations for the Federal Reserve to cut interest rates later this month, while global uncertainty increased demand for safe-haven assets.
Spot gold rose 0.9% to $3,562.80 per ounce by 14:46 GMT, after hitting an all-time high of $3,565.57.
US gold futures increased by 1% to $3,627.40.
The US government reported that job openings fell at a faster-than-expected pace in July, and the employment rate was moderate, consistent with a cooling labor market.
Fouad Rezaqzadeh, a market analyst at City Index and Forex.com, said, “Gold had already reached record levels before the data release, and the lower numbers helped support the precious metal, with expectations to reach its next upside target of $3,600 per ounce.”
Following the data release, the CME Group’s FedWatch tool indicated that investors now expect a 98% probability of a 25 basis point rate cut at the Federal Reserve’s policy meeting on September 16-17, up from 92% earlier.
The Eurozone economy continued to grow at a slow pace in August.
Gold typically rallies during periods of economic uncertainty and low interest rate environments.
Other precious metals also rose, with spot silver gaining 0.8% to $41.22, its highest level since September 2011, supported by gold’s rally.
Platinum jumped 2.1% to $1,432.12, and palladium rose 1.6% to $1,152.68.
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