Gold Edges Higher Ahead of Key US Jobs Data
Gold prices inched higher on Thursday (August 7), while silver surged ahead of the highly anticipated US non-farm payrolls report. The precious metals traded on the COMEX saw gold futures at $4,319.30 per ounce, up 0.46% or $19.70 from the previous day. Silver futures climbed 1.48% to $62.515 per ounce.
The US jobs report is expected to influence market expectations of a potential Federal Reserve rate hike in September. The data will shape investors' views on whether interest rates will remain elevated, which could impact demand for non-yielding assets like gold. Gold has found support from easing crude oil prices, reducing inflation concerns and potentially supporting the metal's value.
However, traders continue to price in a 55% probability of a rate increase in September, as per the CME FedWatch Tool. Recent comments from Federal Reserve officials have also kept rate expectations high, with St Louis Fed President Alberto Musalem suggesting that rates should have been raised at the July meeting.