Gold continues to hit new record highs, trading above $3,600 per ounce in mid-European trading today, Monday, August 8, the opening session of the week. Weak US employment figures supported a further interest rate cut by the Federal Reserve next week, amid market anticipation of inflation figures. The yellow metal is trading up about 0.86% at $3,617 per ounce, while silver is trading at $41.22 per ounce, up 0.57%, maintaining its highest level since September 2011.
US non-farm payrolls (NFP) figures for the economy fell short of expectations, with the economy adding only 22,000 jobs in August compared to 73,000 jobs, a reading below market expectations. The unemployment rate rose 0.01% in August to 4.3%, compared to 4.2%. Monthly hourly wages remained steady at 0.3%. While it declined on an annual basis to 3.7%, compared to 3.9%.
The US employment figures changed market expectations for a US interest rate cut. According to the CME’s FedWatch tool, markets are now pricing in three interest rate cuts, meaning cuts in the September, October, and December meetings, after previously pricing in only September and December. This is in addition to some bets that the September cut will be 50 basis points, reaching 10%, with some expectations from institutions and investment banks, such as Standard Chartered Bank, which now sees a 50 basis point cut in September following the employment figures.
The US dollar index is trading 0.33% lower from its highs in the Asian session at 97.60, supporting the yellow metal’s record levels.

Markets are awaiting the Consumer Price Index (CPI) figures on Thursday. Expectations are for the index to rise 0.3% on a monthly basis, up from 0.2% in July, and 2.9% on an annual basis, up from 2.7%. Core inflation, which excludes food and energy prices, is expected to rise to 0.3% and 3.1% on a monthly and annual basis, respectively.

Platinum, meanwhile, is trading at $1,380, up 0.54%, while palladium is up 1.33%, trading at $1,124.