Gold surged to unprecedented heights on Friday, with spot prices climbing 1% to $3,581.74 per ounce after briefly touching an all-time record of $3,596.57. US gold futures demonstrated even stronger momentum, rising 1.22% to $3,650.40 as investors flocked to the precious metal amid growing economic uncertainty.
The rally intensified following the US Labor Department’s August jobs report, which revealed job openings fell below expectations while hiring remained subdued. This labor market weakness has dramatically shifted Federal Reserve policy expectations, with traders now assigning a 98% probability to a 25 basis point rate cut at the September 16-17 meeting, up from 92% before the data release.
August’s job market performance proved particularly disappointing, with only 22,000 positions added compared to economists’ forecasts of 75,000 new jobs. The unemployment rate climbed to 4.3%, matching July’s level but representing a substantial increase from earlier this year, signaling potential economic cooling.
Market experts remain bullish on gold’s trajectory, with Fawad Razaqzada from City Index noting the precious metal was “already trading in record territory before the release.” The analyst identified $3,600 per ounce as the next upside target, while broader technical patterns suggest continued strength ahead.
Beyond economic fundamentals, mounting political pressures surrounding the Federal Reserve are boosting gold’s safe-haven features. Fed Governor Lisa Cook recently pushed back against President Trump’s efforts to remove her, while the former president has renewed criticism of Fed Chair Jay Powell’s earlier rate decisions.
“Growing concerns over the independence of the US central bank are further undermining trust in dollar-denominated assets and pushing investors toward gold,” according to Heraeus Metals traders.
Gold’s surge lifted other precious metals, with silver rising 0.8% to $41.22, reaching its highest level since 2011. Platinum gained 2.1% to $1,432.12, while palladium climbed 1.6% to $1,152.68, demonstrating broad-based strength across the sector.
Peter Grant, senior metals strategist at Zaner Metals, projects continued upside momentum with “short to medium-term targets around $3,600 to $3,800.” The breakout pattern suggests even more ambitious targets, with “$4,000 could be within reach by late first quarter next year,” highlighting gold’s potential in the current low-yield environment.
