(Kitco News) - The gold market is holding its ground around $3,550 an ounce, and according to some analysts, it remains well supported as the U.S. labor market loses momentum, with the number of available jobs falling more than expected.
Job openings—a measure of labor demand—dropped sharply to 7.18 million, down from June’s reading of 7.36 million, according to the Labor Department's monthly Job Openings and Labor Turnover Survey (JOLTS) report. The data was significantly weaker than expected, as economists had been looking for a relatively stable increase to 7.38 million.
The number of available jobs has dropped to its lowest level since March 2021.
While disappointing labor market data should support gold, the precious metal is not seeing much movement in its initial reaction. Spot gold last traded at $3,554.20, up 0.64% on the day.
Gold has seen robust momentum after breaking above $3,500 an ounce and is now trading near fresh all-time highs. Analysts note that the precious metal is attracting renewed investor interest as markets continue to prepare for interest rate cuts from the Federal Reserve later this month.
According to some economists, the latest employment data further supports the Federal Reserve’s shift in focus toward the labor market rather than inflation.
“This weaker-than-expected print highlights a cooling labor market, reinforcing expectations of a dovish Federal Reserve. With Treasury yields already volatile amid tariff uncertainties, the USD faces downward pressure, while gold gains traction as a safe-haven amid heightened economic concerns,” said Aaron Hill, Chief Market Analyst, FP Markets.
The report said that in July, total hires and separations were roughly unchanged at 5.3 million. Within separations, quits came in at 3.2 million, and layoffs and discharges were 1.8 million, both little changed.
