Gold Holds Near Record Highs on Weak US Jobs Data, Lower Oil
Gold prices remain near all-time peaks as disappointing US jobs data and falling oil prices reduce expectations of further Federal Reserve rate hikes. Renewed efforts by Trump allies to reshape the Fed are also seen by markets as a key factor supporting gold.
Gold is holding near record highs, supported by a combination of macroeconomic and political factors. Weaker-than-expected U.S. jobs data has lowered the likelihood of additional Federal Reserve rate hikes, while falling oil prices have further eased inflation concerns. These developments reduce the pressure on the Fed to tighten monetary policy, which typically boosts gold's appeal as a non-yielding asset.
Adding to the bullish backdrop, allies of former President Donald Trump have renewed efforts to influence the composition of the Federal Reserve. Markets interpret these moves as a challenge to central bank independence, a scenario that historically has led to increased demand for gold as a safe-haven asset. The metal continues to trade near its all-time highs, with investors closely watching for any further shifts in U.S. economic data or Fed rhetoric.
Source: First Squawk