Gold price breaks another record, investors bet on an early Fed rate cut

LONDON - The price of gold continued to rise today and reached a new all-time high, approaching the $3,600 (roughly CZK 74,800) per troy ounce mark. The impetus came from the latest US labour market data, which showed a slowdown in employment and boosted investors' expectations that the US central bank (Fed) will move to cut interest rates as early as this month.

According to analysts, the rise in the gold price reflects a combination of several factors. Weaker labour market data has undermined confidence in the strength of the US economy, which usually leads investors to shift funds into safer assets. This makes gold a more attractive alternative to riskier investments such as stocks or corporate bonds. "Investors are starting to bet that the Fed will have to react more quickly than it was suggesting just a few weeks ago. Higher unemployment coupled with subdued wage growth opens up room for a rate cut, which is traditionally bullish for gold," a commodities strategist at London-based HSBC told Reuters.

Gold has appreciated by more than 25 percent since the beginning of this year. Its price is driven not only by the prospect of softer monetary policy in the US, but also by ongoing geopolitical uncertainty. Tensions in the Middle East, ongoing trade disputes between Washington and Beijing, and weaker economic prospects in Europe are all contributing to investors seeking safety in the traditional safe haven.

According to market traders, interest in gold is also increasing from central banks, especially in Asia. In recent months, they have been buying the precious metal as a reserve asset to ensure the stability of their currencies and protect against fluctuations in the dollar. This trend, coupled with limited supply, is pushing up the price of gold. The markets are now waiting for further signals from the United States. The upcoming Fed meeting will be a key moment. According to analysts, if the central bank does indeed proceed with a rate cut, the gold price may continue to rise and even surpass the $3,700 per ounce mark.

While investors are watching developments with increased attention, some economists have warned that the sharp rise in the gold price may also be a sign of growing uncertainty about the overall global economy.

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