Gold Prices Near Record Highs as Investors Eye Key Labor Market Data

 

Gold prices remain close to their record highs as investors focus on the upcoming U.S. non-farm payroll report, which is expected to influence the Federal Reserve's decision on interest rates in September.

As of 18:57 EST (22:57 GMT), spot gold prices were slightly down by 0.06% at $2,498.10, following a strong month where prices peaked at $2,531.60 on August 20. The labor market data for August is crucial in determining whether the Fed will implement a 25 or 50 basis point rate cut.

Current market expectations indicate a 69% likelihood of a 25-basis-point cut, with the chances of a 50-basis-point reduction decreasing to 31%, according to the CME FedWatch tool.

Despite the surge in gold prices, demand for physical gold remains subdued in major Asian markets, including China, where new import quotas have not significantly boosted demand.