Gold Jumps after Cooling US Jobs Report Boosts Rate Cut Hopes

Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/File Photo
Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/File Photo
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Gold Jumps after Cooling US Jobs Report Boosts Rate Cut Hopes

Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/File Photo
Marked ingots of 99.99 percent pure gold are placed in a cart at the Krastsvetmet non-ferrous metals plant in the Siberian city of Krasnoyarsk, Russia March 10, 2022. REUTERS/Alexander Manzyuk/File Photo

Gold prices hit their highest in over two weeks on Friday as Treasury yields and the dollar declined after data showed US economy created fewer jobs than expected in July, boosting hopes of rate cuts by the Federal Reserve this year, Reuters reported.

Spot gold was up 0.8% at $2,464.32 per ounce as of 1320 GMT, just $19 shy of the record peak of $2,483.60 scaled on July 17. US gold futures climbed 1% to $2,506.60.

"The drop in yields along with the reaffirmation that there is a cut in September just makes gold a lot more attractive," said Alex Ebkarian, chief operating officer at Allegiance Gold.

US 10-year yields dropped to their lowest since December and the dollar hit its lowest since March after data showed that employers added fewer jobs in July than economists had forecast, while the unemployment rate increased to 4.3%.

The data follows comments from Fed Chair Jerome Powell who on Wednesday said that rates could be cut as soon as September if the US economy follows its expected path.

Gold has gained 3.2% so far this week, on track for its best week since April, as rising safe-haven demand from Middle East tensions and expectations of rate cuts made the metal more appealing for investors.

Bullion is traditionally considered a hedge against geopolitical and economic risks, and lower interest rates reduce the opportunity cost of holding the asset.

"The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting," said Jim Wyckoff, senior market analyst at Kitco Metals in a note.

Elsewhere, spot silver added 1.2% to $28.88 per ounce, platinum rose 1.3% to $971.20 and palladium dropped 0.4% to $901.82. All three metals were headed for weekly gains.



GAIN Summit Showcases International Experiences in Governing AI Usage 

Discussions on Tuesday focused on utilizing AI to support and accelerate development programs and to create ideal opportunities for improving social life and its quality.  (SPA)
Discussions on Tuesday focused on utilizing AI to support and accelerate development programs and to create ideal opportunities for improving social life and its quality.  (SPA)
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GAIN Summit Showcases International Experiences in Governing AI Usage 

Discussions on Tuesday focused on utilizing AI to support and accelerate development programs and to create ideal opportunities for improving social life and its quality.  (SPA)
Discussions on Tuesday focused on utilizing AI to support and accelerate development programs and to create ideal opportunities for improving social life and its quality.  (SPA)

The first day of the third Global Artificial Intelligence Summit (GAIN) in Riyadh featured ministers responsible for technology and communications sectors, showcasing their countries' experiences in implementing regulations and controls to maximize the benefits of AI technologies.

GAIN is organized by the Saudi Data and AI Authority (SDAIA) and runs through September 12.

Discussions on Tuesday focused on utilizing AI to support and accelerate development programs and to create ideal opportunities for improving social life and its quality.

Ministers emphasized the importance of implementing regulations to neutralize the risks and threats associated with AI technologies and highlighted the need to use and benefit from AI in accordance with international ethics and norms.

South African Minister of Science and Technology and Innovation Dr. Bonginkosi Nzimande commended the important role of the global summit hosted by SDAIA. He emphasized that the summit provides an ideal environment and platform for international coordination.

He said this coordination will help developing countries keep up with and compete against technologically advanced countries through genuine international cooperation. This technology is a significant contributor to the renaissance of countries and humanity.

Gabon’s Minister of Communication and Media Laurence Ndong emphasized her country's commitment to collaborating with the United Nations Educational, Scientific and Cultural Organization (UNESCO) to develop policies for governing and regulating AI technologies.

Such policies aim to ensure the optimal use of AI technologies for the benefit of Gabon's infrastructure and national development, she stressed.

Ndong also highlighted the importance of addressing the challenges and threats posed by these technologies to government institutions and societies, emphasizing the need for international cooperation to ensure that AI serves humanity as a whole.

Bahrain’s Information and eGovernment Authority Chief Executive Mohammed Ali Al-Qaed reviewed the experiences of several leading countries in AI fields. He discussed the measures and regulations these countries have taken for the use of technologies based on value-based principles that preserve the ethics and culture of their people.

Bahrain is also following a similar path, taking into account the continuous and instant development in this field, he added. Legislation is being constantly developed, especially as it experiences significant and ongoing advancements.

Cambodia’s Ministry of Post and Telecommunications Secretary of State Makara Khov emphasized that his country recognizes the inherent dangers and threats posed by AI technologies.

Cambodia has taken significant measures to address such risks by implementing regulations and procedures governing the use of AI in government institutions and society. The measures have enabled Cambodia to mitigate many risks and threats, while harnessing the potential of essential technologies such as AI.

Oman’s Ministry of Communications and Information Technology Undersecretary Dr. Ali Al-Shidhani agreed with the ministers and officials noted the Sultanate’s successful experience using technologies to develop human resources in various fields and improve its education and health sectors.

Germany’s Ministry of Digital and Transport State Secretary Stefan Schnorr emphasized the importance of addressing the risks associated with technology, especially AI, at the social and geopolitical levels. He called for collaborative efforts between countries and organizations to neutralize these dangers and promote innovation.

Serbia’s Ministry of Science, Technological Development, and Innovation State Secretary Dr. Miroslav Trajanovic warned of the rapid changes and advancements in AI technologies. He emphasized the need for flexible and dynamic measures and laws that can be continually updated to keep pace with these evolving technologies.

Trajanovic stressed that effectively addressing the challenges and threats accompanying AI technologies requires intelligence, professionalism, and the implementation of optimal ways and mechanisms to benefit from them.

Senegal Director of Information and Communication Technology Aissatou Jeanne Ndiaye confirmed that the Senegalese government has utilized AI technologies to support education and scientific research. She emphasized the importance of considering these technologies' potential risks and threats and noted that measures, procedures, and regulations have been implemented to address such concerns.