Commodities
Gold Prices Surge Past $4,250 as Fed Rate Hike Expectations Plummet
The U.S. gold market is experiencing its strongest weekly performance in over a year, driven by shifting expectations around Federal Reserve monetary policy and persistent central bank accumulation.
Recent non-farm payrolls data showed a surprise dip of 23,000 jobs, with economists polled by Dow Jones forecasting a gain of 83,000. This has led to bets for a rate hike in September falling from 55% to 41.9%, according to the CME FedWatch tool.
The Federal Reserve's potential shift towards a dovish stance is creating a favorable climate for precious metals, while putting downward pressure on the U.S. dollar. Spot gold prices have surged past $4,250 per ounce, with bullion-linked assets experiencing their best weekly performance in over a year.