• Global Drivers: Conflicts and economic fears boosted demand
• China’s Role: Central bank, consumers led gold buying spree
• Fed Policy Impact: Rate cuts, labor data influence gold prices
• Potential trading range: 2,588.29-2,701.02 (73.4% probability), Bloomberg

Gold prices have been on a volatile but record-breaking ride in 2024, driven by a mix of global uncertainty and economic shifts.

Early Friday, gold prices fell to an eight-day low of $2,613 as markets await U.S. Nonfarm Payrolls (NFP) data.

Despite a modest recovery to $2,638, gold is still down 0.4% for the week, reflecting its second consecutive weekly decline.

According to Bloomberg, the 7-day trading range for XAUUSD may fall within 2,588.29-2,701.02 (73.4% probability).

Traditionally, gold rallies during times of geopolitical turmoil and economic uncertainty. This year, conflicts such as the turmoil in the Middle East have fueled demand.

However, a significant driver has been central banks, notably the People’s Bank of China, increasing gold reserves.

Chinese consumers also drove the rally, seeking gold as a hedge against domestic economic challenges.

The prospect of interest rate cuts by the U.S. Federal Reserve also influenced prices.

A weaker-than-expected NFP could support gold by reinforcing dovish policy.

Conversely, strong job growth could strengthen the U.S. dollar and weigh on non-yielding gold.

While the 2024's gold rush reflects traditional safe-haven appeal, it also underscores new global economic complexities that shaping the precious metal's role in uncertain times.

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