Gold prices extended their gains on Thursday, hitting a more than one-week high of up to $4,114.99 per ounce on Wednesday. This upward movement was primarily fueled by softer-than-expected US jobs data and a decline in oil prices. Spot gold rose 0.8% to $4,063.56 per ounce as of 0103 GMT.
The softer jobs data stemmed from the ADP national employment report, which indicated that private employment increased by 98,000 jobs last month, falling short of economists' forecasts of 118,000. Additionally, oil prices fell following indirect talks between Iran and the United States regarding the Strait of Hormuz. Elevated oil prices and a strong labor market can typically increase inflation fears and the likelihood of higher interest rates, which are detrimental to non-yielding assets like gold.
While Federal Reserve Chairman Kevin Warsh reiterated his commitment to the central bank's 2% inflation target, he provided little guidance on the future direction of monetary policy or the economy. Traders are currently pricing in approximately a 64% chance of a rate hike in September, according to the CME FedWatch Tool. Investors are closely monitoring June's nonfarm payroll data for further clues on the Fed's monetary policy path. In other precious metals, spot silver rose 1% to $59.76 per ounce, platinum gained 0.4% to $1,583.05, and palladium added 1.1% to $1,223.80. US gold futures for August delivery, however, inched 0.2% lower to $4,075.60.
