Gold continued its surge, closing above the $2,000 an ounce threshold for the first time since March 2022, fueled by a weakening dollar, increasing haven investments, and speculation that the aggressive monetary tightening in the US may be coming to an end.

Data released on Tuesday revealed that job vacancies at US employers in February dropped to their lowest level since May 2021, raising concerns about a potential recession in the world’s largest economy. 

This, in turn, has increased the likelihood that the Federal Reserve will further ease its rate-hike cycle, providing a boost to non-interest-yielding bullion.

“The gold price is primarily now being driven by concerns about the US dollar,” said David Lennox, an analyst at Sydney-based Fat Prophets. He added that there is little in the economic factors to support the currency, while bullion also benefits from a “safe haven premium” due to financial concerns such as the recent banking crisis and geopolitical tensions.

The recently published Job Openings and Labor Turnover Survey (JOLTS) data preceded Friday’s monthly jobs report, which will be closely scrutinized for additional signs of a slowing US economy.

Spot gold was stable at $2,021.05 an ounce as of 9:50 a.m. in Singapore, following a 1.8% increase in the previous session. Concurrently, the Bloomberg Dollar Spot Index experienced a third day of easing. Silver saw a slight uptick after a 4.3% surge on Tuesday, while platinum also rose, and palladium experienced a decline.

Gold’s sustained momentum at its 13-month high could potentially lead to a retest of its record price of $2,075.47, reached in August 2020, as investors seek safer alternatives amid mounting economic and geopolitical concerns.