Spot gold is trading at a record high of US$2,769.61 per ounce (surpassing a previous record of US$2757.22, set on 23 October this year).
The latest Job Openings and Labor Turnover Survey (JOLTS) for September showed a sharp drop in job openings to 7.44 million, down from August’s 8.04 million, and well below forecasts of 7.98 million. Many analysts see this data as supportive of a shift in Fed policy, with potential rate cuts reinforcing gold’s appeal as an investment.
Such a shift could lead to higher inflation, with the precious metal often viewed as a hedge against inflation since it tends to retain purchasing power as currencies depreciate. A weaker US dollar — another likely outcome of rate cuts — could also bolster gold demand. Because gold is traded in dollars globally, a weaker dollar makes gold cheaper for international buyers, thereby increasing demand and supporting higher prices.
The current surge in gold also reflects the demand for safe-haven assets due to economic uncertainties and geopolitical tensions, including concerns over the US presidential election.
Demand for physical gold in the form of bars and coins has risen by 27% this year, compensating for a decline in jewellery purchases. In China, jewelry demand has dropped by 27.5% due to high prices, but interest in gold as a store of value remains robust, particularly in bar and coin form.