Gold pares losses as labor market weakness bolsters Fed easing expectations

Gold prices pared losses on Thursday, holding at near-record highs as soft US jobs data outweighed concerns from firmer inflation data, with investors still betting on the Federal Reserve easing interest rates next week, reports Reuters.
Spot gold was down 0.2 per cent at $3,632.99 per ounce, as of 9:03 a.m. EDT (1303 GMT). Bullion had hit a record high of $3,673.95 on Tuesday. US gold futures for December delivery fell 0.3 per cent to $3,671.50.
"Gold is being 'saved' by the sharp jump in weekly initial jobless claims, which hit a three-year high at 263,000 while core CPI remains elevated at 0.3 per cent month-on-month," said Tai Wong, an independent metals trader.
Recent price movements point to some buyer fatigue, but gold's outlook over the next few months remains constructive, limiting the scope for a significant pullback, Wong added.
US consumer prices rose more than expected in August, recording the largest annual increase in seven months, while weekly jobless claims also jumped sharply, highlighting softening labor market conditions.
Data on Thursday showed US producer prices unexpectedly declined in August, reflecting weaker trade services margins and muted goods costs.