Gold (XCMX-GC1!) demand is surging across global markets, and this week’s developments offer a clear view of why. Spot prices climbed to a record €3,040/oz following a sharply disappointing U.S. August Jobs Report, which showed just +22,000 new jobs far below the expected +75,000. This miss has intensified expectations of a Federal Reserve rate cut later this month, a move that typically strengthens gold’s appeal as a non-yielding asset.
Yet it’s not just monetary policy driving demand. European investors are increasingly viewing gold as a safe haven amid growing global instability. Concerns over the independence of the U.S. Federal Reserve and a sudden leadership shakeup at the Bureau of Labor Statistics have added political uncertainty to the mix, reinforcing gold’s defensive role.
The rally began early in the week, with gold breaking through resistance at €2,950 and holding above €2,980. By Friday morning, prices hovered near €3,020, then surged past €3,040 after the weak jobs data marking one of the sharpest breakouts in nearly a year. With gold’s momentum looking to set to continue the demand for the yellow metal is likely to remain strong across the eurozone.