Gold Prices Rise as Jobless Claims Data Reduces Rate Hike Expectations

Gold and silver prices rose on Thursday, October 1, as softer initial jobless claims data led to a reassessment of Federal Reserve rate hike expectations. The PCE inflation figures, released earlier in the week, had previously fueled market speculation about an imminent rate hike.

The weaker-than-expected inflation data tempered these expectations, causing the probability of a Fed rate hike in October to recede from around 70% to 37%. However, this morning's initial jobless claims report and elevated U.S. Treasury yields have capped the rebound in precious metals.

Spot gold traded at $4,168.08 per ounce, up 0.27%, while spot silver hovered near $61.101, gaining 1.2%. Despite geopolitical tensions supporting gold prices, rising oil prices strengthened the dollar and lifted U.S. Treasury yields, putting pressure on precious metals.

The Strait of Hormuz situation remains unresolved, pushing oil prices higher. Brent crude traded at $100.14 per barrel, while WTI crude stood at $90.75 per barrel.