Gold held its surge to a 13-month high and may test its record price, helped by a falling dollar, increasing haven bets and speculation aggressive monetary tightening in the US is nearing an end.
The precious metal on Tuesday closed above the $2 000 an ounce threshold for the first time since March 2022 after data showed vacancies at US employers dropped in February to the lowest since May 2021.
The data raised concerns that the world’s biggest economy may be edging toward recession, while boosting the likelihood the Federal Reserve will further ease its rate-hike cycle. A falling greenback this week has been another positive for non-interest-yielding bullion, which could test its record high of $2,075.47 reached in August 2020.
“The gold price is primarily now being driven by concerns about the US dollar,” with economic factors suggesting little to support the currency, said David Lennox, an analyst at Sydney-based Fat Prophets. Bullion is also enjoying a “safe haven premium” due to financial fears including the recent banking crisis and geopolitical tensions, he added.
Tuesday’s Job Openings and Labor Turnover Survey, or JOLTS, data preceded Friday’s monthly jobs report, which will be closely watched for more signs the US economy is slowing.
Spot gold was little changed at $2,021.05 an ounce as of 9:50 a.m. in Singapore, after closing up 1.8% in the previous session. The Bloomberg Dollar Spot Index eased for a third day. Silver edged up after surging 4.3% on Tuesday, while platinum also rose and palladium slid.