Gold prices strengthen as dollar weakens, focus turns to US jobs datađžđ°
Instead of the usual trading patterns, we are seeing a dramatic shift in global finance:
The Gold Rush
Gold prices jumped 2.5% to $5,103.10 per ounce this Monday. The main catalyst is a weakening U.S. dollar, which has fallen to a one-week low. As the "greenback" dips, gold becomes a bargain for international buyers, sparking a massive wave of global demand.
Focus on U.S. Jobs
All eyes are on the upcoming U.S. jobs and inflation data. Investors are betting that if the labor market shows signs of cooling, the Federal Reserve will be forced to cut interest rates sooner rather than later. Since gold doesnât pay interest, it usually becomes the "ultimate winner" when rates are expected to fall.
Central Banks are Buying
There is a massive "safety net" being built under these prices. Chinaâs central bank just extended its gold-buying streak for the 15th month in a row. This heavy institutional buying acts as a solid floor, keeping the market stable even when other sectors are volatile.
Silver Steals the Show
While gold is making waves, Silver skyrocketed 8.8% to $83.66 per ounce. With a serious supply shortage and industrial demand for tech and green energy peaking, silver is moving like a high-speed rocket, catching everyone's attention.
Final Thoughts
The current surge in precious metals isn't just a random spike; itâs a reflection of deeper economic shifts. Between the weakening dollar and the steady appetite from global powers like China, gold and silver are reclaiming their titles as the ultimate hedges against uncertainty. While the market is waiting for the U.S. job data to provide a clearer path, one thing is certain: the momentum is firmly with the bulls. For anyone watching the markets, this week could set the tone for the rest of the quarter.