Gold maintained its rise to the highest level in 13 months, heading towards testing the highest level in its history, supported by the decline in the dollar, increased bets on safe havens and expectations of approaching the end of strong monetary tightening in the United States.
On Tuesday, the precious metal closed above $2,000 an ounce for the first time since March 2022, after data showed that job vacancies for US employers fell in February to the lowest level since May 2021.
The data raised fears that the world's largest economy could be heading towards recession, while raising the possibility that the Federal Reserve will ease the cycle of interest rate hikes.
The dollar's decline this week was another positive for non-interest-bearing bullion, which could test its record high of $2,075.47 reached in August 2020.
Dollar weakness
The price of gold is now mainly driven by concerns about the US dollar, said David Lennox, an analyst at Sydney-based Fat Profits, with economic factors not pointing much to support the US currency. He added that bullion also enjoys a safe haven premium due to financial concerns including the recent banking crisis and geopolitical tensions.
Tuesday's employment and turnover survey data pre-empted the monthly jobs report on Friday, which will be watched closely for more signs of a slowdown in the US economy.
Spot gold rose slightly to $2,021.05 an ounce by 9:50 am in Singapore, after closing up 1.8% in the previous session.
The Bloomberg Spot Dollar Index fell for a third day. Silver rose today, after rising 4.3% on Tuesday. Platinum also rose, while palladium fell.
