The price of gold is rising sharply again. With speculation that US interest rates will not rise as quickly, it continued its recent high, reaching its highest level in more than a year on Thursday.
The price for a troy ounce (about 31.1 grams) of the precious metal sometimes rose to 2,045 dollars (about 1,870 euros) on the London stock exchange. This is the highest level since March last year.
Price just below record high
The price is just below the all-time high of $2075 from Summer 2020. As of Thursday afternoon, the price was $2040. That’s about $25 more than the day before.
New data on the US labor market and price developments in the US pushed the gold price higher. The number of initial jobless claims was higher than expected, pointing to the first signs of a slowdown in the US job market.
Developments in the labor market play an important role for monetary policy in the US. The US Federal Reserve has been trying to control high inflation for more than a year by raising interest rates. A robust labor market is seen as the driver of inflation.
In addition, speculation that interest rates would rise less sharply was supported by price data from the US. Producer-level momentum weakened more than expected in March.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
