(Bloomberg) — Gold held gains as traders digested the latest readings on the US labor market while awaiting a key payrolls report that may shed light on the Federal Reserve’s interest-rate path.
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US companies added the fewest jobs last month since the start of 2021, while weekly unemployment claims came in below estimates. That added to signs of a cooling market that may help further tamp down price pressures.
Policymakers have said they’re now more concerned about risks to the labor market than about inflation. With price pressures largely down from their pandemic peak, policymakers are expected to start cutting interest rates this month.
Friday’s jobs report for August is expected to show payrolls in the world’s largest economy increased by about 165,000. The previous print — one of the weakest since the pandemic — contributed to a global stock rout last month, dragging down gold as traders covered margin calls.
Bullion has surged more than 20% this year, supported by growing optimism the Fed will pivot to monetary easing. Robust over-the-counter purchases and strong haven demand due to conflicts in the Middle East and Ukraine have also helped the advance.
Spot gold was up 0.9% to $2,517.85 an ounce as of 10:22 a.m. in New York, after peaking at a record $2,531.75 in August. The Bloomberg Dollar Spot Index was 0.1% lower. Silver, platinum and palladium all advanced.
Copper rose 1.9% to $9,134.00 a metric ton on the London Metal Exchange. Other main base metals were lower.
–With assistance from William Clowes, Sybilla Gross and Sana Pashankar.
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