Gold Surges to Two-Month High Amid Weak U.S. Jobs Report
Gold prices have surged to a two-month high after a weak U.S. jobs report and increased central bank buying lifted the precious metal. According to Reuters and Yonhap News, spot gold topped $4,400 per troy ounce on the 11th local time, its highest level in two months.
The main driver behind the rally is the U.S. jobs report released on the 7th, which showed nonfarm payrolls fell by 23,000 from the previous month, missing market expectations of an 83,000 increase by more than 100,000.
Tim Waterer, chief market analyst at KCM Trade, noted that gold and the dollar have historically shown an inverse correlation. This means that as the dollar falls, gold prices tend to rise.
Central banks are also increasing their gold holdings, with the People's Bank of China buying 20 tons in one month, its largest increase since October 2023. The central bank has bought gold for 21 consecutive months.