(Kitco News) - The gold market is holding on to solid gains back above $3,300 an ounce, even as the U.S. labor market remains fairly resilient with the number of job openings jumping more than expected in May.
May job openings—a measure of labor demand— rose to 7.77 million, up from April’s reading of 7.39 million, according to the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) report. The data was stronger than expected, as economists had forecast a drop to 7.32 million.
Job openings have risen to their highest level since January.
Gold prices have fallen from their session highs following the employment data; however, the market remains well above critical support at $3,300 an ounce. Spot gold last traded at $3,351.52 an ounce, up 1.52% on the day.
The report said that in May, hires increased slightly to 5.5 million and total separations fell to 5.2 million. Within separations, quits came in at 3.3 million, and layoffs and discharges were 1.6 million, both little changed.
The gold market continues to pay close attention to the U.S. labor market, which remains an important factor in the Federal Reserve’s monetary policy.
The central bank has said it is in no hurry to cut interest rates as the U.S. labor market remains relatively healthy and inflation risks remain elevated. However, markets are expecting the central bank to start easing interest rates after the summer.
Bill Adams, Chief Economist at Comerica Bank, told Kitco News that they forecast a "modest" 105,000 monthly increase in nonfarm payrolls in Thursday’s June jobs report, with the unemployment rate holding at 4.2%.
"Barring a bad June jobs report, the Fed is set to hold interest rates steady at the next decision on July 30," Adams said. "Given expectations for tariff-fueled inflation, slower labor supply growth, and more deficit-funded fiscal stimulus in the tax-and-spending bill, the Fed would need to see a significant deterioration of the job market to be persuaded to cut later this year."
