WASHINGTON (dpa-AFX) - Gold prices surged to new record highs on Monday as weak U.S. jobs data sparked economic worries and raised hopes for imminent rate cuts.
Spot gold jumped 0.7 percent to $3,612.41 per ounce in European trade, while U.S. gold futures were little changed at $3,651.
The dollar dipped and Treasury yields sank after data on Friday showed the U.S. economy added just 22,000 jobs in August, far short of expectations for 75,000 and down from an upwardly revised 79,000 jobs in July.
The jobless rate rose to 4.3 percent from 4.2 percent while June revisions showed a negative print, marking the first labor market shrinkage since 2020.
Following the report, traders have fully priced in a 25 bp cut later this month with 8 percent chance of a jumbo 50 bp rate cut, according to the CME FedWatch tool.
Reports on U.S. consumer and producer price inflation due later this week could further influence Fed policy expectations and gold's trajectory.
Elsewhere, investors keep a close eye on the political developments in France, where Prime Minister Francois Bayrou faces a confidence vote today, which he is expected to lose.
Opposition leaders across the political spectrum made clear they would vote to oust Bayrou.
President Macron has so far resisted the idea of renewed snap elections and would therefore be required to appoint a new prime minister, who could be from the centre-left.
On the geopolitical front, U.S. President Donald Trump said he was prepared to move forward on new sanctions on Moscow, hours after Russia fired its biggest-ever aerial barrage at Ukraine.
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