Gold Hits Highest Level Since October Amid Rising Safe-Haven Demand

Gold prices rose during Tuesday's trading, exceeding $4,320 per ounce, marking the highest level since October. This surge is attributed to a renewed demand for safe-haven assets supported by indications of a weakening U.S. economy and increasing bets on a more accommodative monetary policy.

This rise followed the release of a delayed U.S. jobs report, which showed a clear slowdown in the labor market, with the unemployment rate rising to 4.6%, the highest level since 2021. Additionally, wage growth slowed to its weakest pace in over two years, bolstering expectations for interest rate cuts by the Federal Reserve.

Mixed retail sales data and ongoing weakness in regional activity indicators have further heightened concerns about economic growth momentum, prompting investors to bolster their defensive positions and turn to gold as a hedge.

While hopes for progress in Russia-Ukraine peace talks earlier in the session limited safe-haven flows, the ongoing geopolitical uncertainty, along with stable central bank purchases, reestablished demand for the precious metal.

Gold continues to receive support from ETF inflows, in addition to a broader shift away from bonds and sovereign currencies, as markets anticipate the release of U.S. inflation data (CPI) and seek further clarity on the future path of monetary policy.