Gold surged to a new all-time high (ATH) of $2,800 over the weekend after US economic data slowed, paving the way for the Federal Reserve (Fed) to implement an interest rate cut.
At 9.20 am, gold was at $2,796.42, up 0.5% since it opened early Friday in Asian trading.
The precious yellow metal exploded from $2,770 when it had been stable for three days as US Treasury yields edged lower as markets were disappointed by the final 2024 reading of fourth-quarter GDP.
Meanwhile, the US Labor Department reported that the jobs market remained strong as the number of people applying for unemployment benefits fell compared to the previous reading.
While the Fed kept rates unchanged, Jerome Powell said that policy was in a good position and they were in no rush to cut interest rates.
Separately, news reports said the United Kingdom is facing a gold shortage after investors sold billions of gold bars from the Bank of England (BoE) amid concerns that Donald Trump will impose new tariffs on the commodity.
British newspapers said traders had amassed $82 billion in reserves in New York in recent weeks.
Data cited by the FT said traders had sent nearly 400 metric tons into vaults on New York's Comex commodities exchange.
That has boosted total holdings there to 926 tons, the highest level since August 2022.
