Gold Hits New Highs as Weak U.S. Jobs Data Fuels Fed Rate-Cut Bets

Gold prices extended their record rally on Wednesday (Sept 3) after weaker-than-expected U.S. labor data reinforced expectations that the Federal Reserve will cut interest rates this month. Ongoing global uncertainties also supported demand for the safe-haven asset.

At the close, spot gold rose 1.07% to $3,570.66/oz, after touching a record high of $3,565.57/oz. Meanwhile, gold futures advanced 1.15% to $3,634.50/oz.

Weak labor market adds pressure on the Fed

The U.S. government reported that job openings in July 2025 fell more sharply than forecast, while hiring remained modest — signaling a cooling labor market.

Gold was already trading at record levels before the release, but the weaker data gave prices an additional boost, with the next key target seen at $3,600/oz.

According to the CME FedWatch Tool, expectations for a 25-basis-point Fed rate cut at the September 16–17 policy meeting jumped from 92% to 98%.

Investors eye upcoming U.S. labor reports

Market attention now shifts to the ADP private payrolls report and weekly jobless claims due on Sept 4, followed by the official August nonfarm payrolls on Sept 5. These reports are expected to be pivotal for the Fed’s decision.

Fed Governor Christopher Waller reiterated his call for a rate cut this month, while Governor Lisa Cook defended her position against efforts by former President Donald Trump to remove her. Growing concerns about the Fed’s independence are further undermining confidence in U.S. dollar–linked assets, prompting more flows into gold.

Domestic gold prices near VND 134 million per tael

On Sept 4, Vietnam’s SJC gold prices surged to VND 132.4 – 133.9 million per tael, up VND 500,000 per tael. Gold rings also jumped to VND 126.2 – 128.7 million per tael, marking an increase of VND 1.1 million.

Gold remains a long-term safe-haven

Despite heightened short-term volatility, experts agree that gold retains its role as a hedge in an uncertain global economy, with falling interest rate expectations and central banks continuing to buy gold to strengthen reserves.