The precious metal rises above 1% while the bad data in the Labor Market in the US revives the fears of a stanflation.
He Gold reached a new historical maximum this Fridaywith a price around US $ 3,600 the ounce, an unpublished figure. The certainties of a rate cut by the United States Federal Reserve (Fed) after the bad employment data again boosted the price of precious metal, which extends its upward rally: accumulates 44% increases so far this year.
He cash in cash advanced 1.45%, up to US $3,596 on an ounceafter touching an intradiary record of U $ s3,600.15. Meanwhile, the gold futures in the US for December They climb 1.29% to U $ S3.653.
In this sense, the market head of markets in Creative planningCharlie Bilello, stressed that “Gold is on its way to its best year since 1979,” when it had an annual rise of 126.5%. For their part, from The Kobeissi Letter they also echoed the result and said that “Gold always knows what follows”.
In the rest of the precious metals, the futures of the silver 0.22% au s s rise41,15with a weekly increase of 3.16% and an annual one of 47.31%. For its part, copper low 0.29% in future contracts for December, although So far from 2025 its value increases by 11.3%.
Why does gold go up?
From the Exchange BUENBIT They affirmed that “the background is clear” for this rise: “Yields of sovereign bondshistorically high debt levels and Persistent Fear to Structural Inflation. These factors revalued as a reserve of value, reinforcing a pattern that is repeated every time the global financial system shows fatigue, “they detailed.
And they added that “for the investor, the reading is double: Gold does not disappear as an active refuge and continues to fulfill an essential role of diversification“
China Gold Metals
From the financial institution Charles Schwab They also echoed the increase in precious metal price and explained that “Gold is traditionally considered a safe shelter when the dollar and other currencies weaken “in international markets.
In addition, it was mentioned that “gold also received some support from the purchases of the central banks” and cited the case of the Popular Bank of Chinathat “he was buying gold in his attempt to diversify his currency holdings beyond the US dollar.”
Does the market celebrate the Fed decision?
In Schwab They explained that “The recent inflation data in the US generated concern Given the possibility that, with the central banks in a general phase of flexibility (of its monetary policy), inflation is less controlled and currencies collapse. “
They mentioned that “The probabilities of a fed type cutting this month are very high”after knowing the latest labor market data, a situation that occurs “Even with persistent inflation”.
Source: Ambito
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