Gold makes history $2,330 amid 330K new jobs in strong US economy

SOUTHAMPTON, U.K. - April 6, 2024 - PRLog -- The March report from the U.S. Bureau of Labor Statistics, released yesterday unveils a significant increase in total nonfarm payroll employment, with 303,000 new jobs added, underlining the resilience and growth of the American economy.

Key job growth gains were from the health care sector, adding 72,000 jobs, followed by the government sector, up by 71,000 jobs. Total new jobs in January stood at 256,000, February at 270,000, and March at 330,000, indicating a strengthening USA job market.

Prior to the release of the nonfarm payroll data at 8:30 am gold was priced around $2,290. Subsequent to the data publication, there was a slight drop in gold prices to $2,280. This immediate reaction appeared to be a result of the market reacting to positive job sector news. However, this was short lived, and what ensued was remarkable.

Gold quickly rebounded and closed at an impressive $2,329.57, after reaching its historic high of $2,330.47 in early afternoon trading. This being up by almost $40 from its opening and up by almost 4.3% in the week, by $96, proving to be a great asset to hold saved money.

Paul Kohli from The Academy for Professional Intelligence® (TAPI® ), Chartered Accountants (https://professionalintelligence.org) explained, "This significant surge underscores gold's role as a hedge against market uncertainties, even in times of strong economic indicators. For investors and market watchers, this movement highlighted the complexity and interconnectedness of global financial markets."

Israel's suspected airstrikes added to global unease, boosting demand for gold as a safe haven asset. Despite the strong US job reports, global tensions and uncertainties have been the key drivers in increasing gold prices on Friday.

Paul Kohli states "The price of gold is closely tied to US interest rates. While the recent job report suggests that interest rate cuts may not happen soon and may keep the downward pressure on gold prices, nevertheless, the ongoing unrest in the Middle East seems to be weighing more heavily on the minds of foreign investors, prompting them to turn to gold as a safe investment option."

David Rosenberg of Rosenburg Research predicts gold will surge to $3,000 if not higher. He points to tight supply conditions and how bigger investors are underinvested in this commodity as a whole.

The job market, showing strength predominately in the healthcare and government sectors, does not present a convincing link to rising inflation or a strengthening economy being industries not directly driven by consumer confidence.

With escalating middle eastern tensions and the upcoming CPI figures scheduled for April 10 will offer more insight as increased volatility in the Gold market is expected next week.