Safe Haven Movement in Gold Prices: 1.3% Increase

Strong Rise in the Gold Market

In recent days, as investors have stopped preferring risky assets and turned to the safe haven of gold, gold prices have increased by 1.3% to reach $3,983.89. December futures on gold in the US closed at $3,992.90, up by 0.8%.

US Employment Data and Its Effects

According to a report released by ADP, the private sector employment in the US increased by 42,000 last month. This figure is well above the 28,000 increase expected by economists. Strong employment data may reduce expectations for interest rate cuts and keep rates at high levels.

Market Analyses and Comments

On Wednesday, stock markets pulled back from record levels due to concerns over excessive valuations. Jim Wyckoff, senior analyst at Kitco Metals, stated, "As safe haven demand rises, there is a prevailing belief that US stocks are overvalued and a artificial intelligence (AI) stock bubble has formed."

US Central Bank Interest Rate Policy

Last week, the US Central Bank made the anticipated interest rate cut, and Fed Chairman Jerome Powell noted that this could be the last cut of the year. Market expectations assess the likelihood of another cut in December at 63%.

Economic Uncertainties and Gold

Gold, which does not yield interest, typically performs better in low interest rate environments and during times of economic uncertainty.

Important Hearing: Customs Tariffs

Additionally, attention will be on the US Supreme Court for the hearing regarding the legality of the customs tariffs imposed by the Donald Trump administration. The lower court stated that the administration had exceeded its authority in imposing these taxes under emergency law.