Gold recovered early losses after data from the US job market indicated a slowdown, reinforcing expectations that the Federal Reserve may soon begin cutting interest rates.

The Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey (JOLTS) revealed that job openings in July fell to their lowest level since early 2021, while layoffs increased. This data added to growing signs of a cooling labor market.

Following the report, Treasury yields and the US dollar both declined, allowing gold to regain ground. As of 07:40 GMT, spot gold  (XAU/USD)  was trading at $2,503.

Traders are now focused on Friday’s upcoming jobs data, which is expected to show that payrolls in the US grew by about 165,000 last month. Any further signs of labor market weakness could prompt the Fed to pursue more aggressive interest rate cuts, potentially boosting gold.

Gold has surged by over 20% this year, buoyed by increasing speculation that the Fed will soon begin lowering rates. The metal stands to benefit from lower borrowing costs, as it does not pay interest.


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