Gold notches 1% gain after US jobs data

Gold prices rallied at settlement today, June 8, with the US dollar losing glitter as market focus turned to the Federal Reserve’s future monetary policy path.

The number of people filing new claims for US unemployment insurance grew to 261,000 last week, according to a report from the Labor Department today, touching the highest point since October 2021. This, in turn, pushed the US dollar and Treasury yields lower.

In a press briefing earlier today, Director of Communications at the International Monetary Fund (IMF) Julie Kozack said, “We see challenges over the medium-term for the global economy. And that requires policy measures to be taken now.

“We see that through monetary tightening, and we believe central banks should stay the course on monetary tightening to decisively reduce inflation,” she further stated.

Financial markets are pricing in an almost 68% chance that the Fed to keep interest rates unchanged at the current range during the policy meeting. The remainder suggests a 25-basis-point increase.

In terms of trading, bullion for August delivery climbed by 1%, or $20.20, to finish at $1,978.60 an ounce, after hitting the $1,955.20 level earlier in the session.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, ticked 0.70% lower to reach 103.33 points at 08:38 pm Makkah time.