The rise in gold prices was driven by several factors, including expectations of a potential U.S. interest rate cut, speculative buying, and ongoing central bank acquisitions. Despite robust job growth reported in the United States for March, the momentum in bullion continued to climb.
The spot gold jumped by 1.3% to $2,320.04 per ounce, hitting a peak of $2,324.79 earlier in the trading session. This marked a substantial 3.8% increase for the week, indicating the third straight week of gains for gold. U.S. gold futures also saw a rise of 1.4%, settling at $2,339.70, according to Reuters.
Commenting on the market movement, Rahul Kalantri, VP Commodities at Mehta Equities Ltd., noted, “Gold and silver closed on a mixed note, after both precious metals hit fresh lifetime highs in the domestic market. Silver fell after reaching its highest level since June 2021, as investors awaited the important US employment data for fresh indications regarding the Fed’s monetary easing.”
While the Labor Department’s report showed an increase of 303,000 jobs in nonfarm payrolls last month, surpassing economists’ expectations, Fed Chair Jerome Powell’s reassurance that the central bank wasn’t hastily considering a reduction in borrowing costs provided further support to gold prices.
Silver prices also saw a significant rise, climbing by 1.4% to $27.30 per ounce, while platinum remained stable at $925.15. Both metals were poised for a weekly uptick. However, palladium experienced a 1.7% decrease, dropping to $1,003.50 per ounce, and was set for a weekly downturn.
