Gold Holds Ground as US Labor Market Defies Recession Fears

The gold market is showing resilience in the face of a strong US labor market. Initial claims for state unemployment benefits came in at 197,000 for the week ending September 26, beating expectations and marking the third consecutive month below a key level.

Analysts say this stable labor market gives the Federal Reserve room to raise interest rates next week. Expectations of at least one more rate hike before the end of the year are supporting US 10-year yields near their highest level in nearly 20 years, at 5.30%.

Despite these headwinds, gold prices remain steady. Spot gold last traded at $4,182.50 per ounce, up 0.65% on the day. Some analysts attribute this stability to a lack of conviction in the longer-term bullish case for gold.