Gold hits record near $2,790 as investors weigh labor data, risks

Gold surged to nearly $2,790 per ounce on Wednesday, reaching a new record as investors analyzed recent labor data and assessed geopolitical risks ahead of the US elections.

Gold hits record near $2,790 as investors weigh labor data, risks

The JOLTS report indicated that US job openings have dropped to their lowest level since 2021, contrasting with September data showing resilience, which tempered expectations for further aggressive rate cuts by the Federal Reserve. Nonetheless, markets anticipate a 25 basis point cut in each remaining Fed meeting this year. Lower interest rates reduce the opportunity cost of holding non-interest-bearing bullion.

Investors eye key economic data amid rising geopolitical tensions

Investors are now focused on key data releases this week, including PCE inflation, advance estimates for Q3 GDP, and payroll figures, for further insight into the Fed’s monetary policy direction. Additionally, geopolitical tensions in the Middle East and Ukraine and the closely contested US presidential election have increased demand for safe-haven assets.