Gold Hits All-Time High Amid Weak US Employment Figures and Rising Iran Tensions

Gold Hits New Heights Amid Economic and Geopolitical Uncertainty

Gold prices soared to unprecedented levels following US employment figures that reinforced expectations for further interest rate reductions. At the same time, escalating unrest in Iran contributed to ongoing global tensions.

Early Monday, gold surpassed $4,564 per ounce after the latest US jobs report revealed weaker-than-anticipated hiring, fueling speculation that the Federal Reserve will maintain its course of lowering borrowing costs to bolster the economy. Silver also approached its historical high.

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Investors are now anticipating at least two more rate cuts this year, following three consecutive reductions by the Fed in the latter half of last year. These moves have been favorable for gold, which does not yield interest.

Heightened violence in Iran has further increased the safe-haven appeal of precious metals. The potential for significant political upheaval in the country has added to uncertainty in both global politics and energy markets.

Gold has just concluded a year marked by record gains, driven by a combination of falling interest rates, rising geopolitical risks, and diminishing confidence in the US dollar. Many fund managers remain committed to gold, viewing it as a strong long-term investment.

As of 8:23 a.m. in Singapore, gold was up 1.1% at $4,561.12 per ounce. The Bloomberg Dollar Spot Index slipped by 0.1%. Silver advanced 2.7% after a nearly 10% surge the previous week, while palladium and platinum also posted gains.

Meanwhile, the US Supreme Court has postponed a decision on Trump’s tariffs, scheduling its next opinion for Wednesday. A ruling against the tariffs could undermine one of Trump’s key economic policies and mark a significant legal setback since his return to the White House.

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