Gold steadies on vibrant US labor market indicators

Gold prices held ground at settlement today, Sept. 7, after US Bureau of Labor Statistics data, released earlier in the day, showed a pullback in unemployment claims, with markets awaiting more clues about the future path of monetary policy.

Bullion for December delivery ended flat at $1,942.50 per ounce but declined by 1.55% since the end of last week.

Initial unemployment claims decreased by 13,000 to 216,000 applications in the week ended Sept. 2, against forecasts for 233,000 applications, the US Labor Department said in a report.

The four-week moving average came in at f 229,250 claims, a decrease of 8,500 from the prior week's average of 237,750 jobless claim applications (revised from 237,500).

In a separate report, the US Bureau of Labor Statistics indicated that the Unit Labor Cost (ULC) rose 2.2% during the second quarter of this year, a revision from the previous estimate of 1.6%. This reflected a 5.7% and 3.5% increase in hourly wages and productivity, respectively.

It also reported a 3.5% rise in nonfarm business sector labor productivity for the same period, marking a slight 0.2% revision downward from initial estimates.

Elsewhere, Barclays bank analysts expect weak US economic growth during the first half of 2024 as excess savings are depleted.

Traders are now seeing a near certainty (93% chance) that the US central bank will fix its benchmark funds rate at the rate-setting committee meeting on Sept. 19-20, according to the CME FedWatch Tool.