(Kitco News) - The gold market appears to be attracting some bullish attention as the U.S. labor market shows further signs of cooling, with the number of available jobs falling to its lowest level since May.
August job openings—a measure of labor demand—fell to 7.08 million, down from July’s upwardly revised figure of 7.34 million, according to the Labor Department’s monthly Job Openings and Labor Turnover Survey (JOLTS). The figure also came in weaker than expected, as economists had forecast job openings to decline to 7.23 million.
The gold market caught a modest bid in its initial reaction to the disappointing labor market data. Spot gold last traded at $4,166.10 an ounce, up more than 1% on the day.
Late last week, analysts said disappointing employment data could have an outsized effect on gold prices, as it could prompt markets to scale back their aggressive interest rate hike forecasts. Analysts have explained that, because of the relatively healthy labor market, the Federal Reserve has been able to focus on rising inflation pressures. However, if the labor market continues to deteriorate, the central bank could be forced to keep interest rates unchanged.
