Gold price today, July 3: World gold price exceeds 4,100 USD

Closing the trading session on July 2, the world spot gold price increased by 91 USD to 4,121 USD per ounce. This morning’s session, the price continued to move up, currently trading at 4,125 USD.

The market went up after a weaker-than-expected jobs report, reducing the possibility of the US Federal Reserve (Fed) raising interest rates this year. In addition, the Dollar Index – an index that tracks the strength of the greenback with 6 major currencies – decreased by 0.5% yesterday, making gold cheaper for buyers outside the US.

“Gold tends to perform better in a low interest rate environment. We think much of the increase in the gold market is based on this,” said David Meger – Director of Metals Trading at High Ridge Futures.

A report from the US Department of Labor showed that the economy created 57,000 new jobs last month, lower than economists’ forecast of 110,000. The unemployment rate remains at 4.2%. An earlier report also showed private sector new job growth was slower than expected in June.

Investors currently bet that the probability of the Fed raising interest rates in September is 51%, down from 66% before the employment data was released.

On July 1, Fed Chairman Kevin Warsh assessed inflation expectations and that inflationary pressures have cooled in recent weeks. However, he repeated his commitment to bring inflation in the US to the 2% target.

The World Gold Council (WGC) said central banks bought gold again in May. Based on the latest published data, official gold reserves increased by a net of 41 tons this month.

In the Middle East, Iran and the US ended a round of indirect negotiations on July 1, but there are no signs of major progress toward a long-term peace agreement.

In addition to gold, other metals also increased in price. Silver prices increased more than 3% to $61 an ounce. Platinum and palladium are also 3-4% more expensive.