What factors drove the recent surge in gold prices?

Gold prices rose due to safe-haven demand amid escalating US-China trade tensions and weaker US jobs data, which fueled expectations of a Federal Reserve rate cut.

How did the US jobs data impact the gold market?

The rise in new unemployment claims in the US suggested a slowdown in the labor market, which increased the likelihood of the Federal Reserve cutting interest rates in September.

What is the current market sentiment regarding a potential Fed rate cut?

The market is now pricing in over a 91% chance of a 25-basis-point rate cut by the Federal Reserve at its September 2025 meeting.

Home / Business and Economy / Gold Hits 2-Week High as Trade Woes and Jobs Data Fuel Rate Cut Bets

Gold Hits 2-Week High as Trade Woes and Jobs Data Fuel Rate Cut Bets

7 Aug

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Summary

Gold prices rise to over 2-week high
Driven by safe-haven demand amid trade tensions
US jobs data hints at labor market slowdown

Gold Hits 2-Week High as Trade Woes and Jobs Data Fuel Rate Cut Bets

On August 7, 2025, gold prices rose to their highest level in over two weeks, driven by a surge in safe-haven demand. This came as US President Donald Trump's latest round of tariffs on imports from several countries went into effect, heightening global trade tensions.

Meanwhile, data showed that the number of Americans filing new unemployment claims ticked up to a one-month high last week, suggesting some easing in the US labor market. This added to expectations that the Federal Reserve will cut interest rates at its September meeting, with the market now pricing in over a 91% chance of a 25-basis-point reduction.

Analysts noted that the ongoing trade disputes and geopolitical uncertainties continue to underpin the gold market, as investors seek the precious metal as a store of value. They added that if the US economic data continues to show signs of weakness, it could lead to even more dovish expectations from the Fed, further supporting gold prices.

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