World gold prices continue their streak of record increases

The US employment report pulled gold prices to a new historic peak, touching 2,194 USD in the March 8 session.

Closing the weekend trading session, the world spot gold price increased by 31 USD to 2,178 USD per ounce. During the session, the price at one point touched 2,194 USD - the highest in history. Yesterday was also the 4th consecutive session that precious metals set a new peak.

Since the beginning of the week, prices have increased more than 3%. This is the strongest week of gold's increase since mid-October 2023.

Prices soared after the US released the February jobs report. Accordingly, the unemployment rate increased and wage growth slowed, although new job creation activities remained vibrant.

World gold prices have continuously increased over the past few sessions. Chart: Goldprice

"This report puts pressure on the USD and reinforces expectations that the Fed will reduce interest rates this year," said David Meger - Director of Precious Metals Trading at High Ridge Futures. These are all beneficial factors for gold.

A weaker USD will make gold cheaper for buyers outside the US. The 10-year US government bond yield also fell to its lowest in more than a month.

Currently, the CME FedWatch interest rate tracking tool shows that investors are betting on a 73% chance of the Fed cutting interest rates from June. However, the probability of interest rate reduction from May has also increased to 30%.

World gold prices began a series of record price increases from the beginning of this week. The main reason is the signs that inflationary pressures have decreased, leading to expectations that the Fed will reduce interest rates this year. In two hearings before the US House of Representatives and Senate this week, Fed Chairman Jerome Powell both made statements hinting at the possibility of interest rate cuts.

"The jobs report makes investors increase their bets on the Fed adjusting policy in June. The general trend of the market is still up, although short corrections may be recorded," said Tai Wong - gold investor. Quarterly type in New York forecast.

World gold prices peaked for the third consecutive session

The Fed Chairman's comments on reducing interest rates pushed the world gold price to 2,164 USD in the March 7 session. 

Countries with the largest gold reserves in the world

The US currently holds more than 8,100 tons of gold, nearly as much as the next three countries, Germany, Italy and France, combined, according to data from the World Gold Association.  46