Gold reaches another record high as U.S. job openings drop sharply, adding to rate cut bets

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Gold futures notched another record high Wednesday on reinforced expectations of a U.S. interest rate reduction after weaker than expected U.S. job openings data highlighted a cooling labor market, and a flight to safe-haven assets after selloffs in the equity and bond markets.

The U.S. government reported job openings fell to a 10-month low in July, dropping to 7.18M from June's reading of 7.36M, with more unemployed people than positions available for the first time since March 2021 during the COVID-19 pandemic, data seen as consistent with easing labor market conditions.

Following the data release, traders pushed up the probability that the U.S. Federal Reserve would cut rates by 25 basis points at its September 16-17 policy meeting to 98%, according to CME Group's FedWatch tool.

Analysts say the heightened haven demand reflects concerns over the Fed's independence after President Trump moved to oust Fed Governor Lisa Cook, as well as U.S. budget strains and global trade uncertainty.

Gold is rallying as India loads up on bullion, U.S. fiscal concerns mount and inflation concerns resurface, SP Angel analysts said in a note.

The Reserve Bank of India has reduced holdings of U.S. Treasurys over the summer while boosting gold holdings, and the steady trend of BRICS-aligned countries accumulating gold to diversify foreign reserve holdings away from the U.S. dollar is coinciding with rising concerns over Western budgets and debt loads, SP Angel wrote.

Front-month Comex gold (XAUUSD:CUR [https://seekingalpha.com/symbol/XAUUSD:CUR]) for September delivery settled +1.2% to $3,593.20/oz, another record high and the metal's sixth straight daily increase, and front-month Comex September silver (XAGUSD:CUR [https://seekingalpha.com/symbol/XAGUSD:CUR]) ended +1.1% to $41.542/oz, its fifth straight gain and highest settlement since September 9, 2011.

ETFs: (NYSEARCA:GLD [https://seekingalpha.com/symbol/GLD]), (NYSEARCA:GDX [https://seekingalpha.com/symbol/GDX]), (GDXJ [https://seekingalpha.com/symbol/GDXJ]), (NYSEARCA:IAU [https://seekingalpha.com/symbol/IAU]), (NYSEARCA:NUGT [https://seekingalpha.com/symbol/NUGT]), (PHYS [https://seekingalpha.com/symbol/PHYS]), (GLDM [https://seekingalpha.com/symbol/GLDM]), (AAAU [https://seekingalpha.com/symbol/AAAU]), (SGOL [https://seekingalpha.com/symbol/SGOL]), (RING [https://seekingalpha.com/symbol/RING]), (BAR [https://seekingalpha.com/symbol/BAR]), (OUNZ [https://seekingalpha.com/symbol/OUNZ]), (SLV [https://seekingalpha.com/symbol/SLV]), (PSLV [https://seekingalpha.com/symbol/PSLV]), (SIVR [https://seekingalpha.com/symbol/SIVR]), (SIL [https://seekingalpha.com/symbol/SIL]), (SILJ [https://seekingalpha.com/symbol/SILJ])

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