Bounces With The Lift In US Initial Jobless Claims

Gold in the Asia-Pac session is experiencing a slight decline after bouncing back from its lowest closing level since mid-March. The surge in US unemployment claims dampened expectations of further Fed tightening, leading to increased interest in gold. The precious metal closed 1.3% higher at 1965.46.

• According to a report from the US Labor Department released on Thursday, initial jobless claims climbed to 261,000 last week. This figure marked the highest level since October 2021 and significantly surpassed the median economist forecast.
• The rise in US jobless claims resulted in reduced expectations for upcoming Federal Reserve rate hikes over the next three meetings. FOMC-dated OIS pricing attaches a 27% chance of a 25bp hike next week, with July and September receding to a cumulative chance of 80% and 68% respectively.
• The dollar extended a drop following the data print, boosting gold.
• In recent weeks, the price of the precious metal has remained relatively stable in a range centred on $1,950 per ounce, as investors eagerly await clearer signals regarding the future direction of US monetary policy.