On August 2, 2024, Gold Prices Soar Following U.S. Employment Data and Rising Geopolitical Tensions
Gold prices have reached new heights, with gram gold hitting a record ₺2,642 and quarter gold trading at ₺4,297 as of August 2, 2024. This surge in gold prices follows a disappointing U.S. non-farm payroll report, which fell short of expectations with only 114,000 jobs added, and an increase in the unemployment rate from 4.1% to 4.3%.
The price of gold rose sharply after the U.S. data was released, with spot gold reaching up to $2,474 per ounce before stabilizing around $2,464, marking a 0.74% increase. The rise in gold prices reflects heightened demand for safe-haven assets amidst growing recession fears and geopolitical tensions.
The latest data indicates a significant contraction in manufacturing activity and a decline in employment to its lowest level since 2020, further fueling recession concerns and boosting demand for gold as a protective asset.
Geopolitical tensions in the Middle East have also contributed to the surge in gold prices. The assassination of Hamas leader Ismail Haniyeh in Iran and ongoing missile attacks from Hezbollah into northern Israel have heightened regional instability, driving further interest in gold.
Source: NTV / Prepared by Irem Yildiz