Gold Rises as US Labor Market Shows Signs of Cooling Down

Gold prices surged in overnight trading following the release of US labor market data that showed signs of cooling down. The World Gold Prices Index rose to $4,094.4 per ounce after the data was released, a gain of about 0.11% since the start of the trading session.

The decrease in recruitment demand, as reported by the US Department of Labor's Employment and Rotation Survey, dropped to 7.36 million in June, lower than the adjusted 7.54 million of the previous month. This decline indicates that US businesses are becoming more cautious in their hiring activities.

While other components of the report did not show a significant decline, the overall trend suggests that the US labor market is gradually losing momentum. This development may lead the Federal Reserve (Fed) to be more cautious before continuing to tighten monetary policy.

The recent increase in gold prices was initially limited by the recovery of the USD and rising US bond yields. However, with the cooling down of the labor market, gold's upward momentum is expected to continue.