The non-agricultural report sent a clear signal that the US labor market is cooling. Expectations of the Federal Reserve's interest rate cut are heating up, and the dollar is under pressure. The Bank of India's gold reserves increased by more than 9 tons in June, the highest level since July 2022.
Gold and silver futures both hit their highest since May on Friday due to poor non-farm payrolls reports, rising expectations of the Federal Reserve's interest rate cut, and the dollar is under pressure. Furthermore, the Bank of India's “burst buying” has also contributed to the recent rise in gold and silver prices.
At the close of trading on Friday, the settlement price of NYSE gold futures GCQ24 and GC00 for August delivery was $2397.70 per ounce, up $28.30 on the same day, or 1.2%. The closing price of gold hit the highest level since May 21.
According to Dow Jones market data, based on the most active contracts, gold futures rose 2.5% this week, the strongest weekly gain since the week of May 10.
Spot gold US stocks rose 1.5% at the end of the session and surged to the integer level of 2,340 US dollars, breaking a new high since May 22. The cumulative increase this week was 2.87%, the biggest weekly increase in nearly 13 weeks.
Silver also rose on Friday. The prices of its September futures contracts SIU24 and SI00 closed up nearly 2.8% to $31.69 an ounce, the highest closing price since May 17. The cumulative increase in silver prices this week was 7.2%, the biggest weekly increase since the week of May 17.
According to the US non-farm payrolls report released on Friday, 0.206 million new jobs were added in June, higher than the expected 0.19 million, but the number of new non-farm payrolls dropped sharply in April and May, offsetting the impact of exceeding expectations in June. Furthermore, the unemployment rate unexpectedly rose to its highest level in two and a half years, and wage growth fell to its lowest level in three years, sending a clear signal that the US labor market is cooling.
In fact, not only is it boosted by non-agriculture, but the Bank of India's “burst buying” has also contributed to the recent rise in gold and silver prices.
On Friday local time, World Gold Council analyst Krishangopaul posted on social media platform X that according to weekly data calculations from the Reserve Bank of India, the Reserve Bank of India's gold reserves increased by more than 9 tons in June, the highest level since July 2022.
This also means that India's gold reserves have increased by 37 tons this year to 841 tons.
In May, it was reported that the Bank of India had also moved 100 tons of gold from the UK back to its domestic treasury.
This year, central banks around the world were the main driving force behind the rise in gold prices, driving the price of gold to a record high in May.
According to a recent survey by the World Gold Council, due to increased geopolitical and financial risks, holding gold is more attractive, and many central banks are still planning to buy gold in the coming year. According to the survey, about 20 central banks plan to increase their gold holdings, but it has not been revealed which countries are expected to buy gold.