Gold Rallies on Weakening US Data and Geopolitical Tensions
Gold's price has seen a significant surge in recent sessions, reaching $4,401.40 after a 2.37 percent jump on Friday.
The rally was sparked by a disappointing US jobs report that missed every mark, resulting in a contraction of 23,000 jobs instead of the expected 80,000.
This unexpected drop sent ten-year Treasury yields tumbling 15 basis points and knocked the dollar down 1.2 percent, creating an environment where gold tends to shine.
Swap markets now price in better than a 70 percent probability of a quarter-point rate cut by the third quarter, and Fed Chair Jerome Powell's post-meeting remarks have reinforced this expectation.
The rally is being driven from two directions: weakening US data, falling real yields, and a dollar that has lost its footing; and an increasingly combustible geopolitical landscape that has reawakened gold's role as a haven asset.