Gold increased "dizzily" to an unprecedented peak

The gold market continued its relentless grind to record highs, hitting an all-time high of $2,339.57 per ounce before the end of the trading week. This is considered the latest recovery of gold that took place after the US economy created 303,000 jobs in March, far exceeding expectations. At the same time, the unemployment rate dropped to 3.8%. Despite strong job growth, wages were relatively muted, rising 0.3%, in line with expectations.

Economists described the latest nonfarm payrolls data as a "blockbuster report", supporting higher bond yields and the relative strength of the US dollar. Bond yields have risen as markets continue to change their expectations about the start of the US Federal Reserve's (FED) easing cycle.

Note this could be a hostile environment for gold, however, June gold futures last traded at $2,345.50 an ounce, up 1.60% on the day. The precious metal is up nearly 5% compared to last Friday.

Comment:

🔴Fed Minutes Preview: Discussions over rate outlook on focus as markets pare back chances of rapid cuts

The Federal Reserve (Fed) will release the minutes of the March policy meeting on Wednesday. Investors will pay close attention to comments regarding the inflation outlook and the possible timing of a policy pivot.

Comment:

-This year, I expect one rate cut in America in September.

-The European Central Bank is closer to cutting interest rates and inflation in Europe is heading towards decline.

-Gold continues to rise to $2,450 due to geopolitical tensions.

Comment:

Figures released Wednesday showed a key inflation measure has beaten economists' forecasts for three straight months. The core CPi index increased by 0.4% compared to February and increased by 3.8% compared to the same period last year, similar to the previous month.