Gold traded at its highest price in a month on Friday after a report showing signs of softening in the labor market boosted confidence among investors that federal policymakers would soon move to cut interest rates.
Data from the U.S. Bureau of Labor Statistics showed that total nonfarm payrolls increased by 206,000 in June, slightly better than Wall Street projections of 200,000. But the unemployment rate unexpectedly ticked up to 4.1%. Additionally, BEA employment figures for both April and May were revised downward by a combined 111,000.
Gold picked up where it left off heading into the Fourth of July holiday and continued its surge in Friday morning trading, aided by a weaker dollar and a slip in U.S. Treasury yields following the jobs data.
The yellow metal was up $25.70 at $2,382 per ounce. Meanwhile, silver also continued its impressive run, already bolting through the $30 ceiling and aiming even higher to close out the week – trading $0.75 higher at $31.12 per ounce.
Friday’s payroll data was among several closely watched economic reports this week that revealed a sluggish labor market and helped investors make their case for the Fed to cut interest rates sooner than later. Current market sentiment suggests a 75% likelihood of a cut in September.
On Wednesday, ADP National Employment Report data showed job creation among private employers slowed for the third straight month, while annual pay grew at its slowest pace since August 2021.
The Department of Labor also reported 238,000 workers applied for unemployment benefits last week, which fell short of the expected 233,000 applications.
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