This week, the international gold market experienced a robust surge, with spot gold prices reaching historic highs after the release of the non-farm payroll report, showing a weekly increase of over 2%. Despite brief market fluctuations, overall gold prices maintained an upward trend as investors focused on the Federal Reserve's policies and global economic outlook.
Non-Farm Data Pushes Gold Prices to New Highs
On Friday (February 7) at the close of the New York trading session, spot gold rose 0.17%, reaching $2,861.01 per ounce. At 23:46 Beijing time, gold prices hit $2,886.79 per ounce, marking a historic high. Throughout the week, spot gold increased by 2.24%, displaying a volatile upward trend: steady rise from Monday to Wednesday, minor correction on Thursday, and fluctuation at high levels on Friday, ultimately setting a new record.
Gold futures also saw a rise, with COMEX gold futures closing up 0.35% at $2,886.80 per ounce, reaching an intra-day high of $2,910.60 at 23:46, and gaining 1.83% for the week.
Market analysts indicate that the gold price surge was primarily driven by the U.S. non-farm employment data and the University of Michigan's inflation expectations survey. The data showed a strong performance in the U.S. job market in January, with wage growth exceeding market expectations, which bolstered investor expectations for the Federal Reserve to maintain high interest rates. Meanwhile, rising inflation expectations further boosted the demand for gold as a safe-haven asset.
Diverging Trends in Silver and Copper, Mixed Performance in Metal Markets
Compared to the strong performance in the gold market, silver showed relative weakness. Spot silver fell 1.07% on Friday to $31.83 per ounce but still managed a weekly gain of 1.66%. COMEX silver futures fell 1.28% to close at $32.210 per ounce, with a slight weekly decline of 0.15%.
Copper prices saw a significant rise this week. COMEX copper futures increased 2.96% on Friday to $4.5930 per pound, with a total weekly gain of 7.35%. Growing confidence in global economic recovery boosted copper prices significantly, as investors remain optimistic about the future demand for industrial metals.
Market Outlook: Inflation and Interest Rate Policies are Key
Looking ahead, the market will continue to focus on U.S. economic data and the Federal Reserve's monetary policy. Given the persistently high inflation expectations, gold retains its strong appeal as a safe-haven asset. Analysts believe that if the Federal Reserve maintains its current tightening policy, changes in the U.S. dollar and Treasury yields will significantly impact gold prices.
Additionally, investors need to closely monitor the global economic environment, particularly U.S.-China trade policies and geopolitical risks, and their impact on the market. Should economic uncertainties increase, gold may continue to receive support and even aim for new historic highs.
