Gold prices have been on a volatile but record-breaking ride in 2024, driven by a mix of global uncertainty and economic shifts.Early Friday, gold prices fell to an eight-day low of $2,613 as markets await U.S. Nonfarm Payrolls (NFP) data.Despite a modest recovery to $2,638, gold is still down 0.4% for the week, reflecting its second consecutive weekly decline.
According to Bloomberg, the 7-day trading range for XAUUSD may fall within 2,588.29-2,701.02 (73.4% probability).
Traditionally, gold rallies during times of geopolitical turmoil and economic uncertainty. This year, conflicts such as the turmoil in the Middle East have fueled demand.However, a significant driver has been central banks, notably the People’s Bank of China, increasing gold reserves.Chinese consumers also drove the rally, seeking gold as a hedge against domestic economic challenges.The prospect of interest rate cuts by the U.S. Federal Reserve also influenced prices.A weaker-than-expected NFP could support gold by reinforcing dovish policy.Conversely, strong job growth could strengthen the U.S. dollar and weigh on non-yielding gold.While the 2024’s gold rush reflects traditional safe-haven appeal, it also underscores new global economic complexities that shaping the precious metal’s role in uncertain times.More By This Author:Week Ahead: Powell, OPEC+, And US Jobs Take Focus Brent Prices Surge Amid Geopolitical Tensions Gold Reaches 1-Week High
