Gold Price Stabilizes Near $4,590 as Jobless Claims Fall Short
Gold prices stabilized near $4,590 an ounce on Thursday as jobless claims fell below expectations, but the Federal Reserve's potential rate hike remains a concern. The August 27 session saw gold trading at $4,588.50 per ounce, down 0.10% from the previous day. Meanwhile, silver prices were down 0.06% at $67.950 an ounce.
The weekly jobless claims report released on Thursday showed a drop to 203,000 for the week ended August 22, beating the consensus estimate of 208,000 and marking a decline from the revised 207,000 reported the previous week. This development kept the labor market signal firm, preventing gold from benefiting from rate relief.
The latest market positioning is still influenced by Wednesday's data stack, which included July PCE inflation rising 3.7% year-over-year. The combined message left September pricing tilted towards a Fed hold, but kept a year-end hike live, with futures implying a 36.5% probability of a 25-basis-point September hike and a 72.7% probability of at least one hike by December.