Gold futures soared on Thursday (May 9) after the United States reported a higher-than-expected increase in initial claims for unemployment benefits, signaling a potential slowdown in the labor market and bolstering investors’ expectations of interest rate cuts by the Federal Reserve (Fed) this year.
In trading, gold futures surged by $18, or 0.78%, closing at $2,340.30 per ounce, while silver futures climbed by 7.64 cents, or 2.77%, settling at $28.365 per ounce. Platinum futures rose by $6.20, or 0.63%, to close at $990.80 per ounce, and palladium futures increased by $15, or 1.57%, ending the session at $971.30 per ounce.
The US Department of Labor unveiled that initial jobless claims surged by 22,000 to 231,000 last week, marking the highest level in over eight months since August 2023 and surpassing analysts’ estimates of 215,000.
This latest labor market data adds to the mounting evidence of a cooling US labor market, following last week’s lower-than-expected non-agricultural employment figures for April and a drop in job openings to a three-year low in March.
Analysts anticipate that a slowdown in the labor market could prompt the Federal Reserve to implement two interest rate cuts within this year.
Investor focus remains on forthcoming US inflation data to gauge the Fed’s stance on interest rates. The United States is scheduled to release the Producer Price Index (PPI) on May 14 and the Consumer Price Index (CPI) on May 15, which are expected to provide clarity on the central bank’s monetary policy trajectory.
The Spot Market is Open
Friday, May 10, 2024
Metals Updated at | USD Bid/Ask | Ounce Change | Low/High |
Gold 07.10 | 2,346.30 2,347.30 | +0.40 +0.02% | 2,306.00 2,349.10 |
Silver 07.10 | 28.30 28.40 | 0.00 0.00% | 27.43 28.46 |
Platinum 09.10 | 983.00 993.00 | +2.00 +0.20% | 970.00 996.00 |
Palladium 07.10 | 956.00 998.00 | +2.00 +0.21% | 924.00 998.00 |
Rhodium 05.00 | 4,600.00 5,400.00 | 0.00 0.00% | 4,450.00 5,300.00 |