Gold prices surge on safe-haven demand, long-awaited rally

Gold prices advanced on Thursday, extending a long-awaited rally as investors increased allocations to the safe-haven asset amid rising economic uncertainty and geopolitical risks.

The spot price of gold climbed to $2,450 per ounce, up 1.8% on the day and nearing record highs set earlier this week. Trading volumes surged as market participants responded to signals of persistent inflation and concerns over potential policy missteps by major central banks.

Analysts cited a combination of factors driving the metal’s appreciation. Safe-haven demand remained robust as tensions in Eastern Europe and the Middle East showed no signs of easing. Meanwhile, expectations of slower monetary easing by the Federal Reserve—despite earlier projections of rate cuts—supported the opportunity cost of holding non-yielding assets like gold.

Technical resistance levels were tested as the price broke past $2,400, a psychological barrier that had capped gains in previous sessions. Some traders pointed to increased central bank purchases, particularly from emerging markets, as a structural support for prices.

The rally followed softer-than-expected U.S. jobs data, which reduced expectations for aggressive Federal Reserve easing in the near term. The unemployment rate edged up to 4.1%, while nonfarm payrolls missed forecasts, reinforcing concerns over economic softening.

Gold’s performance contrasted with broader market sentiment, where equities and risk assets showed mixed reactions to the data. The U.S. dollar, typically inversely correlated with gold, weakened slightly against major peers, further supporting the metal’s upward momentum.

While short-term volatility remains possible, the underlying trend reflected a shift in investor preferences toward assets perceived as defensive. Market watchers will closely monitor upcoming inflation reports and Federal Reserve communications for further direction.