Gold rises on weak US jobs data, lower oil prices
What's the story
Gold prices increased on Thursday, hitting a one-week high. The rise was mainly due to weaker-than-expected US jobs data and falling oil prices. Spot gold rose 0.8% to $4,063.56 per ounce at 1:03am GMT, after hitting a high of $4,114.99 per ounce on Wednesday, the highest since June 23. Meanwhile, US gold futures for August delivery fell marginally by 0.2% to $4,075.60 per ounce.
Employment report
US report shows private sector jobs growth at 98,000
The US national employment report revealed that private sector jobs grew by 98,000 last month, falling short of the expected 118,000. This low number has sparked debate over how it might affect June's nonfarm payroll data, due later today. It also has investors questioning where the Federal Reserve will take interest rates next. The market is now closely watching these indicators to gage future trends in gold prices.
Policy outlook
Fed's Warsh reiterates commitment to 2% inflation target
Federal Reserve Chairman Kevin Warsh has reiterated his commitment to the central bank's 2% inflation target. However, he did not provide any clear indications about the future direction of monetary policy or the economy. Traders are now pricing in a 64% chance of a rate hike in September, reflecting firming expectations of tighter monetary policy amid these economic developments.