Gold (GC=F) continued its upward march for a third consecutive week, maintaining strong momentum after briefly hitting an all-time high earlier this week. The precious metal has found support from a combination of weaker-than-expected U.S. labor market data and growing concerns over the Federal Reserve’s independence, keeping investors eager for safe-haven assets.
Bloomberg reports that bullion was trading near $3,542 an ounce, slightly below the record $3,578.51 per ounce reached on Wednesday. The spike came after U.S. job openings unexpectedly dropped, fueling expectations that the Fed may move to cut rates at its September meeting. Historically, lower interest rates tend to make non-yielding assets like gold more attractive, and this dynamic has coincided with strong demand for safe-haven investments amid uncertainty about the central bank’s future direction.
Market participants are now turning their attention to the pivotal U.S. payrolls report expected on Friday, which could extend the slowest stretch of job growth since the pandemic. This follows data on Thursday showing U.S. jobless claims rose to their highest levels since June, pushing Treasury yields to their lowest point in several months. A softening labor market and falling yields are likely to further bolster the appeal of gold as investors seek alternatives to bonds offering minimal returns.
Technical indicators suggest gold has reached overbought territory in the short term, but the metal remains up by more than a third year-to-date, making it one of the strongest-performing major commodities in 2025. The recent rally has been supported by comments from Fed Chair Jerome Powell last month, who left the door open to potential rate cuts, reinforcing investor expectations for looser monetary policy.
Over the past three years, both gold and silver have more than doubled in value, driven by heightened geopolitical risks, economic uncertainty, and disruptions to global trade. These factors, combined with an escalation in President Donald Trump’s public attacks on the Fed, have heightened concerns over the central bank’s independence. Trump has repeatedly vowed to secure a majority at the Fed and push rates lower, adding another layer of uncertainty that has kept bullion in strong demand.
Analysts note that gold’s resilience reflects both traditional safe-haven buying and the growing market perception that the U.S. monetary policy path may be shifting. Even as the metal tests overbought technical levels, its performance this year highlights persistent investor appetite for protection against economic volatility and central bank unpredictability.
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