ADVERTISEMENT

Gold Rises to Four-Week High Ahead of Fresh US Economic Data

Track the latest gold prices here.

<div class="paragraphs"><p>An employee holds a stack of 1 kilogram gold bars in the precious metals vault at Pro Aurum KG in Munich, Germany. Photographer: Andreas Gebert/Bloomberg</p></div>
An employee holds a stack of 1 kilogram gold bars in the precious metals vault at Pro Aurum KG in Munich, Germany. Photographer: Andreas Gebert/Bloomberg

Gold rose to the highest since early July as investors waited on fresh data to be released on the state of the U.S. economy and the potential pace for interest-rate hikes.

Bullion rose 2.2% last week -- paring a fourth monthly decline -- and continued to climb on Monday as the risk of a recession cooled expectations for how sharply the Federal Reserve will raise rates to tame inflation. The US is due to release key employment data this week, with July jobless claims coming Thursday and nonfarm payrolls Friday.

Gold Rises to Four-Week High Ahead of Fresh US Economic Data

The labor market remains “extremely tight,” Fed Chair Jerome Powell said last week, referencing a near-record number of job openings and historically low unemployment. But the economy is losing momentum, highlighted by a report Thursday that showed a second-straight decline in gross domestic product.

Gold may benefit from a flight to safe havens, Craig Erlam, a senior market analyst at Oanda, said in a note, citing “extremely high inflation” and the likelihood of more rate hikes. Still, there’s concern that demand for gold jewelry may fall amid weaker economic growth in some of the biggest markets, according to the World Gold Council, which singled out potentially weak consumption in China and India.

Read more: Gold Jewelry Demand May Drop Through 2022, Gold Council Says

Spot gold climbed 0.4% to $1,772.11 an ounce at 4:44 p.m. in New York. The Bloomberg Dollar Spot Index fell 0.3% after sliding 0.8% last week. Platinum and palladium both gained.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.