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Gold shines brightly and sets new records. Why did gold rise 16% in a month?

MGC Gold Futures

The precious metal has posted a meteoric rise, fueled by a flight to safety as markets sift through a mosaic of economic data.

MGC Gold Futures 2024 04 08

Basic moments:

  • Gold hit a new all-time high of $2,353.
  • Markets are digesting a barrage of economic data.
  • Traders are running to the safety of the yellow asset.
  • Gold prices rose sharply on Friday and remained in strong demand early Monday after investors reacted to the latest US data. The job market is still hot, as March nonfarm payroll data showed, with 303,000 new workers joining the world's largest economy. Gold gained more than 2.6% on Friday and hit a new record on Monday, reaching $2,353 an ounce.
  • Gold has been performing extremely well lately. Over the past four to five weeks, the price of the yellow metal has jumped as much as 16%, adding more than $300 to its price. And that's a huge leap from an asset notorious for its low returns but strong reputation as a safe haven.
  • Factors driving the rally include geopolitical tensions in the Middle East and dim prospects for lower inflation. Despite the hot jobs report, the Federal Reserve could still decide to cut interest rates from their 24-year high. This, in turn, could potentially lead to even more inflation as lower borrowing costs make money easier to access.

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