Gold

The U.S. Labor Department reported a surge in weekly unemployment claims for the week ending May 4, with applications rising by 22,000 to 231,000. This marks the highest level of claims since August 2023, exceeding the four-week average of 215,000 and economists' forecast of 214,000.

Gold futures inched lower on Thursday, as the U.S. dollar gained strength and investors remained cautious ahead of crucial economic data releases. The most active June 2024 contract for gold futures closed at $2,322.30 in New York, down $1.90.

According to Minneapolis Fed President Neel Kashkari, the Federal Reserve's inflation crusade may still not have restricted policy enough to bring down high prices. Speaking during an interview at Reuters in New York the president of the Minneapolis Federal Reserve Bank suggested that interest rates are likely to stay put for an extended period.

Today’s strong recovery in gold was based on two important factors. The first is a delayed reaction to Friday’s jobs report, and the second is an increased geopolitical concern regarding Israel's long-promised ground invasion of Rafah in Gaza.

The latest U.S. jobs report showed a slowdown in hiring, with nonfarm payrolls increasing by 175,000 in April, down sharply from March's robust 315,000 new job gains. The unemployment rate held steady at 3.9%, while average hourly earnings rose less than expected.