According to the company, gold prices jumped sharply, reaching $3,600 per ounce before closing at $3,587 by the end of trading last week. This is a manifestation of the mounting economic pressure on the US market amid a weak labor market, growing concerns over the future of US monetary policy, and global tensions. It stated that the factors behind the significant price hike are mainly expectations of an imminent interest rate cut by the US Federal Reserve, following weak US jobs data that surprised markets and reshaped the monetary policy landscape for the rest of the year. The report added that December future prices increased at the end of the week to record $3,653 per ounce, with weekly gains of four percent -- the strongest performance in more than three months.

The report indicated that these developments coincided with geopolitical tensions in more than one sensitive region around the world, which raised levels of anxiety in international financial markets and supported investors’ appetite for safe assets. It revealed the current data show that the Federal Reserve is now forced to strike a complex balance between inflation targets and maintaining labor market stability, which makes it likely to ease in the coming period and remain supportive of gold’s upward movement. It added that markets are awaiting US inflation data this week, along with confidence indicators and job reviews, which may push gold’s movement towards greater volatility in the short term, “but this seems poised to remain within a high range, if the new monetary policy directions are confirmed.” (KUNA)