- Gold hits record highs, defying US Nonfarm Payrolls spike and US Dollar gains, highlighting safe-haven status.
- Fed rate cut outlook adjusted after employment data, central bank remarks.
- Geopolitical tensions and strong demand from China bolster Gold's market strength.
Gold rallied to a new all-time high, ignoring a strong March Nonfarm Payrolls report in the United States (US), which could prevent the Federal Reserve (Fed) from slashing rates sooner than the market expects. In achieving its milestone, the yellow metal ignored the rise in US Treasury yields and the Greenback, which clings to modest gains of 0.09%.
XAU/USD trades at $2,324 after reaching $2,330 earlier in Friday’s North American session. Gold’s price continued to be driven by fundamentals linked to the US Dollar, geopolitical risks and physical demand.
Focusing on data, US Nonfarm Payrolls figures for March crushed estimates and February’s numbers as new hirings rose to 303,000. Consequently, the Unemployment Rate fell, while Average Hourly Earnings were mixed, rising on monthly figures but diving on an annual basis.
Following the data, bets that the Fed would cut rates in June fell further, from around 70% a week ago to 53.4%, according to the CME FedWatch Tool.
The employment report reinforced Fed Chair Jerome Powell’s words on Wednesday. He said they’re in no rush to cut rates, and his words echoed throughout the week. On Friday, officials crossed the wires led by Richmond’s Fed Barkin, Dallas Fed Logan and Governor Bowman.
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