World gold prices skyrocket due to weak US employment data
World gold prices soared above $3,550 an ounce due to weak US employment data and expectations that the Federal Reserve (Fed) will soon cut interest rates.
As of 8:00 a.m. on September 3, the world gold price increased sharply, trading around 3,554.20 USD/ounce, up 0.64% during the day. The gold price maintained its upward momentum after breaking the 3,500 USD/ounce threshold and is currently approaching new record highs.
According to the US Department of Labor's JOLTS Report, the number of open jobs (a measure of labor demand) in July fell sharply to 7.18 million, much lower than economists' forecast of 7.38 million. This figure is the lowest since March 2021, showing that the labor market is losing momentum.
The weak data reinforced expectations that the Fed will shift its focus from inflation to stabilizing the labor market. Analysts said gold is attracting investor money as the market expects the Fed to cut interest rates later this month.
Aaron Hill, Senior Market Analyst at FP Markets, said the data added to the downward pressure on the US dollar and bond yields, making gold an attractive safe haven amid economic concerns.
