Gold Surges to Unprecedented Levels

(MENAFN) The value of gold climbed dramatically to a fresh all-time peak on Friday, following disappointing non-farm payroll figures for August that heightened speculation about a potential Federal Reserve interest rate reduction in September.

The cost for a single ounce of gold jumped roughly 1.1%, reaching a new record price of $3,586.89 by 12:35 GMT.

Shortly after touching this historic high, the gold price hovered near $3,574 as of 12:48 GMT.

Gold had already attained record prices earlier in the year, exceeding $3,500 amid worldwide trade disputes sparked by US tariffs.

This "safe haven" commodity has appreciated by over 30% so far in the current year.

Although prices had steadied around $3,400 as trade tensions diminished, growing anticipation of a rate decrease at the Federal Reserve's September session renewed demand for the precious metal, traditionally viewed as a secure investment.

This new peak came after the release of underwhelming non-farm payroll statistics.

The US economy expanded by only 22,000 jobs in August, falling significantly short of the predicted 75,000.

Additionally, the June employment figure was revised downward by 27,000 to reflect a loss of 13,000 jobs, and the unemployment rate increased from 4.2% in July to 4.3% in August.

The Federal Reserve, frequently criticized by US President Donald Trump, is expected to announce its decision this month.

According to money market projections, the Fed is very likely to implement a rate reduction this month and potentially reduce rates twice more before the end of the year.

With inflation dropping below forecasts in July and employment growth slowing, markets are anticipating a 25 basis-point cut at the September meeting.

Currently, the policy interest rate ranges between 4.25% and 4.5%.

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