Gold Hits Fresh Record at $3,600 After U.S. Economic Data
The backdrop is clear: falling sovereign bond yields, historically high debt levels are pushing price higher.
Quick overview
- Gold prices surged over 1% on Friday, reaching a record $3,600 per ounce amid weak U.S. labor market data.
- The precious metal has gained 44% year-to-date and is on track for its best annual performance since 1979.
- Spot gold rose to $3,596 an ounce, while silver futures increased by 0.22%, reflecting a mixed performance among precious metals.
- Factors such as falling bond yields and central bank purchases, particularly from China, are driving demand for gold as a safe-haven asset.
Gold climbed more than 1% on Friday, hitting an unprecedented $3,600 per ounce, as weak U.S. labor market data reignited concerns over stagflation and reinforced expectations of a Federal Reserve rate cut later this month.
The precious metal has now gained 44% year-to-date, extending its powerful rally.
Spot gold rose 1.45% to $3,596 an ounce after touching an intraday high of $3,600.15, while U.S. December futures advanced 1.29% to $3,653. The metal is on track for its strongest annual performance since 1979, when prices soared 126.5%.
Other precious metals moved mixed. Silver futures rose 0.22% to $41.15, booking a 3.16% weekly gain and up 47.31% so far in 2025. Copper futures for December slipped 0.29%, though remain up 11.3% year-to-date.
Why is Gold Rising?
The backdrop is clear: falling sovereign bond yields, historically high debt levels, and persistent concerns about structural inflation are all bolstering demand for gold as a store of value. Investors are once again turning to the metal as a safe-haven asset, underscoring its enduring role in portfolio diversification.
Gold has also benefited from steady central bank purchases, particularly from the People’s Bank of China, which has been accumulating reserves as part of its broader effort to reduce reliance on the U.S. dollar.
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