Gold rises again and sets a record high! But experts say pay attention

Gold prices rose on Thursday (5th).

Falling oil prices have eased concerns about inflation, the dollar has weakened, and U.S. bond yields have fallen. At the same time, investors are waiting for this Friday's non-farm payrolls report for clues on interest rates. Gold prices rose to more than a two-week high on Thursday (5th). However, experts warn that recent non-farm payrolls data have been volatile, and if the results are stronger than expected, gold may face the risk of falling.

Spot gold rose 1% to US$4,100.27 per ounce, hitting an intraday high of US$4,146.63, the highest since October 20.

U.S. gold futures for December delivery rose 1% to $4,113.50 an ounce.

Reuters reported that David Meger, head of metals trading at High Ridge Futures, said: "It is not that the market has completely eliminated expectations for interest rate hikes. As energy prices fall, the market expects that inflation concerns will ease, and the need for future interest rate hikes may also be reduced."

Brent crude oil remained below $100 a barrel, after falling nearly 9% in the previous session, as the market hoped that the Democratic Party would gain a large number of votes in the U.S. midterm elections, which may reduce the risk of further escalation of the war with Iran.

According to the CME Group's FedWatch tool, traders currently see a 66% chance of a rate hike in December.

Investors are awaiting Friday's U.S. nonfarm payrolls report for further clues on the Fed's future policy direction.

Tai Wong, an independent metals trader, said: "Recent non-farm payroll data has been highly volatile. If the results are stronger than expected, gold may face downside risks, which may also further consolidate the market's highly anticipated interest rate hike in December."

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Spot silver was flat at $52.23 an ounce.

Spot platinum rose 1.6% to $1,520.75 an ounce.

Spot palladium rose 3.8% to $1,042.24 an ounce.