FX.co ★ Gold Rises on Weak US Data

Gold prices have continued their ascent, reaching close to a one-month peak of $3,380 per ounce. This surge is fueled by the latest weak economic indicators from the United States and a dovish stance from the Federal Reserve, which have increased the appeal of gold as a safe-haven asset just ahead of the anticipated nonfarm payroll report on Friday. In the final week of May, weekly jobless claims climbed to 247,000, marking their highest level since early October 2024 and exceeding market predictions of 235,000. Additionally, productivity in the first quarter experienced a more significant downturn than initially projected, although the trade deficit narrowed mostly due to reduced import levels. Earlier in the week, the ADP report highlighted that only 37,000 jobs were created in the private sector in May, the smallest increase since March 2023. Moreover, the ISM Services PMI indicated the sector's first contraction in almost a year. Coupled with this economic data, mounting geopolitical and trade tensions further contribute to market instability. The United States has recently doubled tariffs on steel and aluminum imports to 50%, sparking concerns about potential reignition of trade disputes with major global partners.