Gold’s Historic Labor Cost Ratio Sparks Market Euphoria Amid Fed Rate Cut Bets
Gold's relentless rally has pushed the labor-to-price ratio to a century-high, with workers now needing 116 hours of minimum wage labor to afford a single ounce—more than double the 80-hour peaks seen in previous eras. The metal's 64% year-to-date surge reflects a perfect storm of central bank accumulation, dollar weakness, and ETF inflows.
Investors are piling into Gold as expectations mount for consecutive Fed rate cuts in October and December. Traders now price in a trajectory toward $4,400/oz, though prices retreated 2.6% Friday after Trump's tariff comments triggered profit-taking from record highs above $4,300.