XAU/USD: Gold Rockets to Record High Above $2,300 After ADP Report Comes In Hot

Precious metal eclipsed the milestone price tag on Thursday, fueled by lots of buying after a report showed the US economy remains resilient.

Key Points:

• Gold presses to a new record of $2,305.
• US economy grows and inflation stalls.
• Gold has added 15% since Feb. 15.
• Gold prices XAUUSD advanced for a seventh straight day on Wednesday and stayed elevated early Thursday after a fresh report flagged more signs of growth. Private sector jobs for March rose the most since July 2023 with 184,000 new hires added by US companies. The figures were released by payrolls processing firm ADP and precede Friday’s nonfarm payroll report, which includes all jobs without farming and government sector.
• The increase in private sector jobs comes on the back of stalling inflation. In other words, the perfect balance between economic growth and receding price pressures. At least for now. It’s also what the Federal Reserve is looking for in its quest to lower interest rates this year. Again, Friday’s big jobs data will be the next major milestone.
• In that context, gold overtook the unseen $2,300 level as lower rates prompt traders to seek alternatives to fixed income assets, or those that generate fixed interest. The precious metal advanced early Thursday to an all-time high of $2,305 per troy ounce, chalking up a shiny 6.5% gain in the past seven trading days. Zoom further out, and gold has pulled off a massive 15% rally since February 15 with only 9 down days out of 33 trading days in total.