Gold Extends Strong Rally, Hits New ATH at $3,578/oz as U.S. Job Hiring Falls to Lowest Since March 2021
This signal further reinforces expectations that the Fed will be forced to cut interest rates by the end of 2025 to “rescue” the labor market, as instability in the economy increases and safe-haven demand surges.
Following the release of the labor data last night, investors raised the probability of a 0.25% Fed rate cut at the September 16–17 policy meeting from 92% to 98%, according to the CME FedWatch Tool. This suggests a rate cut is almost certain, and in the short term, gold could rally strongly to $3,600 or even $3,700/oz if market enthusiasm continues.
Today, investors are focused on the ADP Non-Farm Employment data to be released tonight. If ADP figures continue to show weakness, a sharp breakout in gold prices will be unavoidable.
In summary, gold is showing strong upward momentum amid economic and geopolitical uncertainty, coupled with the prospect of lower interest rates.
Technical Analysis
In the short term, gold is undergoing a relatively sharp correction during the Asian session. However, if gold can hold the strong support zone at Fibonacci 0.5–0.618 ($3,517–$3,528), this may serve as a foundation for gold to resume its strong rally toward $3,600 today.
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