Gold traders are capitalizing on recent market shifts as a drop in U.S. job openings has reignited interest in the precious metal. The Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTS) revealed a decrease in job vacancies, fueling renewed enthusiasm for gold.
According to the JOLTS report, job openings fell to 7.67 million by the end of July, down from June’s revised figure of 7.91 million. This decline, which marks the lowest level since April 2021, missed economists’ expectations of over 8 million openings.
“The number of job openings remained relatively stable at 7.7 million at the end of July, showing a year-over-year decrease of 1.1 million. The job openings rate held steady at 4.6 percent,” the report stated.
The reduction in job openings underscores a cooling labor market, which has bolstered gold’s appeal. Despite the overall market sluggishness, gold has maintained its support above $2,500 per ounce and has seen renewed buying interest in response to the JOLTS data. December gold futures were last traded at $2,524.50 per ounce, showing minimal change for the day.
The weak employment data has put pressure on the U.S. dollar, with some analysts suggesting that the Federal Reserve might consider a more aggressive rate cut later this month. The CME FedWatch Tool indicates a 49% probability of a 50-basis-point cut on September 18.
Michael Brown, Senior Research Analyst at Pepperstone, noted the significant market reaction to the employment report. “The dovish response has been pronounced, with equities dropping, Treasuries rallying sharply, and the market assigning a 40% chance to a 50-basis-point cut in September,” Brown said. “This reaction highlights the heightened sensitivity of markets to economic data. It also elevates the importance of Friday’s jobs report, indicating that ‘bad news is bad news’ at the moment, with market participants more concerned about downside growth risks than the prospect of additional policy support.”
