On September 9, the price of gold reached a record high, surpassing $3,670 per ounce. By 5:00 PM Moscow time on September 10, it had slightly retreated to $3,654, marking an almost 35% increase since the beginning of the year.
Why Gold Prices Aren’t Dropping
Gold futures also hit historic highs, climbing above $3,700 per ounce. The main driver behind this surge is weak labor market data in the United States. In July, employment growth was just 73,000 jobs, below the forecast of 106,000, and in August, only 22,000 jobs were added compared to the expected 75,000. This indicates a less-than-robust economic outlook, which in turn influences investor interest.
Experts anticipate that the Federal Reserve will likely cut rates on September 17, which further supports rising gold prices. During periods of geopolitical instability—such as trade wars and conflicts in the Middle East—gold traditionally gains value. Central banks are also actively increasing their gold reserves, which drives both demand and prices, according to Izvestia.
$4,000 per Ounce Is Not Out of Reach
Analysts believe that by the end of the year, gold prices could rise significantly, potentially reaching around $4,000 per ounce, or even $4,200 if the trade war between China and the United States intensifies.
