GoldĀ prices climbed 1% on Thursday after data showedĀ U.S.Ā weekly jobless claims surged last week, cementing expectations that theĀ Federal ReserveĀ will pause its interest rate hiking cycle.
SpotĀ goldĀ rose 1.3% toĀ $1,965.1Ā per ounce. U.S.Ā goldĀ futures gained 1.1% toĀ $1,980.3.
The number of Americans filing new claims for unemployment benefits surged last week, suggesting that the labor market was slowing amid mounting risks of a recession.
"This data shows a further weakness in the US economy, which is good news forĀ goldĀ as it will allow the Fed to be on hold," saidĀ Edward Moya, senior market analyst at OANDA.
"If we get further softness in inflation, if the Fed holds and they really don't signal a strong likelihood of a hike for the next meeting, then there is a good case forĀ goldĀ to edge higher."
Following the jobs data, the dollar slipped to a near one-week low against its rivals, makingĀ goldĀ less expensive for other currency holders, while benchmarkĀ U.S.Ā 10-yearĀ TreasuryĀ yields tumbled.
Money market participants now see a nearly 74% chance that theĀ U.S.Ā central bank will skip raising interest rates at its policy meeting next week, up from nearly 66% earlier, according to the CME's Fedwatch tool.
LowerĀ U.S.Ā interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
TheĀ U.S.Ā consumer inflation report for May, due onĀ June 13, could provide more clarity about the health of the world's largest economy.
"There's a lot of uncertainty and you could see it inĀ goldĀ prices, if yields really start to back off here, thenĀ goldĀ could move much higher," saidĀ Daniel Pavilonis, senior market strategist, RJO Futures.
Elsewhere, silver jumped 3.4% to $24.24 per ounce, while platinum fell 0.7% to $1,010.93.
Palladium dipped 2.1% to $1,359.34, after falling to its lowest since June 2019 at $1,348.74 earlier in the session.