Rate Hike Expectations Rise, Gold Prices Fluctuate Amid Mixed Economic Signals

The recent U.S. economic data has shown a mixed picture, with manufacturing expansion slowing and surprisingly strong employment numbers.

The S&P Global's final U.S. August Manufacturing PMI came in at 53.4, below the expected 55.2 and previous 55.6, but registering eight consecutive months of growth.

In contrast, JOLTS job vacancies rose to 7.27 million, while ADP employment increased by only 38,000, marking the weakest number since January this year.

The U.S. non-farm payrolls for August, released on Friday evening, added 162,000 jobs, far exceeding market expectations of 55,000 and setting the second-highest single-month increase this year; June was revised up from 20,000 to 31,000, and July saw a major revision from -23,000 to +21,000.

The unemployment rate held steady at 4.1%, and average hourly earnings rose 0.3% month-on-month.

Despite the mixed economic data, market bets on a 25 basis point rate hike in September rebounded to about 60% after the release of the U.S. non-farm payrolls report.