The Non-Farm Payroll report released a significant signal of cooling in the US labor market, with expectations of a Fed interest rate cut rising and the US dollar under pressure. India's central bank gold reserves increased by over 9 tons in June, the highest level since July 2022.
Due to the poor non-farm payrolls report, expectations of a Fed rate cut increased, putting pressure on the US dollar, and gold and silver futures hit their highest level since May on Friday. In addition, India's "explosive buying" is also driving up gold and silver prices recently.
At the close on Friday, the settlement price of NYMEX gold futures GCQ24 and GC00 for August delivery was $2,397.70 per ounce, up $28.30 on the day, a 1.2% increase. The closing price of gold hit its highest level since May 21.
According to Dow Jones market data, calculated with the most active contract, gold futures rose 2.5% this week, the strongest weekly increase since the week ending May 10.
Spot gold in the US stock market rose 1.5% in the final trading session, approaching the $2,340 integer mark, reaching a new high since May 22. It has risen 2.87% this week, the largest weekly gain in nearly 13 weeks.
Silver also rose on Friday, with SIU24 and SI00, September futures contracts, closing up nearly 2.8% at $31.69 per ounce, the highest closing price since May 17. The price of silver rose 7.2% this week, the largest weekly gain since the week ending May 17.
The US non-farm payroll report released on Friday showed a net increase of 0.206 million jobs in June, higher than the expected 0.19 million jobs, but the sharp downward revision of non-farm payroll employment in April and May offset the positive surprise in June. In addition, the unemployment rate unexpectedly rose to its highest level in two and a half years, and wage growth fell to its lowest level in three years, signaling a significant cooling in the US labor market.
In fact, not only non-farm payroll but India's "explosive buying" is also driving up gold and silver prices recently.
On Friday, Krishan Gopaul, an analyst at the World Gold Council, posted on social media platform X that according to calculations based on weekly data from the Reserve Bank of India, India's gold reserves increased by more than 9 tons in June, the highest level since July 2022.
This also means that India's gold reserves have increased by 37 tons this year, reaching 841 tons.
In May, there were reports that the Reserve Bank of India was also bringing back 100 tons of gold from the UK to its domestic vaults.
This year, central banks around the world have been the main drivers of rising gold prices, pushing gold to a new record high in May.
According to a recent survey by the World Gold Council, due to intensified geopolitical and financial risks, holding gold is more attractive, and many central banks still plan to buy gold in the next year. The survey showed that about 20 central banks plan to increase their gold holdings, but did not disclose which countries are expected to buy gold.