Gold extends gains on weak jobs data, lower oil prices

Gold prices extended gains on Thursday, after hitting a more than one-week high in the previous session, as investors took stock of softer-than-expected jobs ​data, while lower oil prices lent additional support to bullion.

Spot ‌gold rose 0.8% to $4,063.56 per ounce, as of 0103 GMT, after rising to as much as $4,114.99 per ounce on Wednesday, its highest level since June 23.

US gold futures ​for August delivery inched 0.2% lower to $4,075.60.

Private employment rose by 98,000 ​jobs last month after an unrevised 122,000 advance in May, the ⁠ADP national employment report showed.

Economists polled by Reuters had forecast private ​employment increasing by 118,000.

Oil prices fell after Iran and the United States ​concluded a round of indirect talks on Wednesday, focused on the Strait of Hormuz, but made little headway toward a lasting peace.

Elevated oil prices and a stronger labor market ​can stoke fears around inflation and higher-for-longer interest rates. While gold is ​traditionally seen as a hedge against inflation, it loses its appeal as a non-yielding asset ‌in ⁠a high interest-rate environment.

Federal Reserve Chairman Kevin Warsh said on Wednesday he will stick firmly to the U.S. central bank’s 2% inflation target, but gave little indication about where he thinks monetary policy or the economy are headed.

Traders ​are pricing in roughly ​a 64% chance ⁠of a rate hike in September, according to the CME FedWatch Tool, reflecting firming expectations of tighter monetary policy.

*Investors are now looking out for June’s nonfarm payroll data, ​due ⁠later today, for further clues on the Fed’s monetary policy path, which could help shape near-term moves in gold.

Spot silver rose 1% to $59.76 per ounce, platinum ⁠gained 0.4% ​to $1,583.05, and palladium added 1.1%to $1,223.80.