Gold Rises as Cooling US Employment Data Backs Rate Cuts
What caused gold prices to rise recently?
Gold prices have risen recently due to multiple factors, including increasing expectations for interest rate cuts, a weaker US dollar, and strong demand from central banks and investors6. The cooling US employment data also contributed to the rise in gold prices, as it bolstered expectations for lower interest rates in the coming months6.
How did US hiring data influence interest rate expectations?
US hiring data showed a gradual cooling in the labor market, with hiring and wage growth stepping down in June and the jobless rate edging up. This data bolstered expectations for lower interest rates in the coming months, keeping the prospect of a September rate cut alive.
What was the percentage increase in gold prices on Friday?
Gold prices rose by 1.1% on Friday, reaching $2,381.44 per ounce, following the release of US employment data that indicated a gradual cooling in the labor market, thereby supporting expectations for lower interest rates in the near future.