What recent milestone has gold prices achieved?

Gold prices have reached a record level, exceeding $3600 per ounce, specifically hitting $3631.66 per ounce on September 8.

What factors contributed to the rise in gold prices?

The rise in gold prices was supported by weak U.S. labor market data, which increased expectations for a Federal Reserve interest rate cut.

What does Peter Grant predict for the future of gold prices?

Peter Grant, a Senior Metals Analyst, predicts that gold may continue to rise towards a range between $3700 and $3730 in the near term.

How has the U.S. labor market affected investor sentiment towards gold?

A significant decline in job growth and a rising unemployment rate in the U.S. have enhanced expectations for a Federal Reserve rate cut, making gold more attractive to investors.

What is the current outlook for Federal Reserve interest rates?

Traders are anticipating a 25 basis point cut in interest rates, with a slight chance of a larger 50 basis point cut, which would positively influence gold prices.

How have other precious metals reacted to the changes in gold prices?

Other precious metals have also seen increases, with silver rising by 1%, platinum by 0.7%, and palladium by 2.1%.

Gold Hits New Record Level Exceeding $3600 an Ounce

Gold prices recorded an unprecedented record level on Monday, September 8, exceeding the $3600 per ounce barrier, supported by weak U.S. labor market data that boosted expectations for a Federal Reserve interest rate cut next week.

Gold rose in spot trading by 1.3% to reach $3631.66 per ounce, after hitting a historic peak of $3636.69 during the session. U.S. gold futures for December delivery also increased by 0.5% to $3670.80.

Peter Grant, Vice President and Senior Metals Analyst at Zaner Metals, stated: "The yellow metal may continue to advance towards a level between $3700 and $3730 in the near term, and any pullbacks in the coming period likely represent buying opportunities." He added: "All factors are currently supportive of gold, and despite the inflation shock this week, the yellow metal may touch the $3600 per ounce level."

This surge came after data released on Friday showed a significant decline in job growth in the U.S. during August, with the sector experiencing a sharp slowdown and the unemployment rate rising to 4.3%, the highest in nearly four years, reflecting a deterioration in the labor market and enhancing the likelihood of a Federal Reserve interest rate cut during its scheduled meeting on September 16 and 17.

According to the CME Group's FedWatch tool, traders are factoring in a 25 basis point cut, with an 8% chance of a larger cut of 50 basis points. A rate cut is a positive factor for gold as it reduces the opportunity cost of holding it and puts pressure on the dollar, making the yellow metal more attractive to holders of other currencies.

Gold prices have jumped by 38% since the beginning of the year, after recording a 27% increase during 2024, supported by a weak dollar, increased central bank holdings of the metal, a tendency for monetary easing, and rising global uncertainty.

Regarding other precious metals, silver rose in spot trading by 1% to $41.39 per ounce, platinum increased by 0.7% to $1382.25, while palladium jumped by 2.1% to $1134.56.

Gold Hits New Record Level Exceeding $3600 an Ounce

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