Gold prices held near record highs on Wednesday, with investors awaiting key United States labour data for fresh direction as safe-haven demand from a global bond sell-off kept prices buoyant.
Gold refreshed all-time highs near US$3,550 earlier in the session before retreating. By 3:50 pm AEST (5:50 am GMT), spot gold was trading $2.1, or 0.1%, lower at $3,531.69 per ounce.
The renewed global bond market crisis has lifted demand for gold, with long-dated yields soaring and rattling investor sentiment. The metal is widely viewed as a traditional safe-haven asset during times of risk aversion.
Concerns over the United Kingdom’s fiscal situation drove a sharp spike in 30-year gilt yields, spilling into European and Japanese bond markets. The turmoil has added to investor demand for gold and the U.S. dollar.
Expectations for a jumbo interest rate cut by the Federal Reserve this month have also underpinned gold, with markets anticipating softer U.S. employment data. The backdrop of ongoing Ukraine-Russia tensions is further fuelling safe-haven flows.
Analysts at ANZ said: “There is growing unease among investors about U.S. monetary policy as the Trump administration looks to remake the Fed’s Board of Governors with candidates more amenable to the president’s policies."
Attention is now fixed on the job openings and labour turnover survey (JOLTS) due later in the session, ahead of Friday’s (Saturday AEST) key nonfarm payrolls release.
The figures are expected to shape the outlook for U.S. monetary policy and provide fresh insight into the health of the labour market.
