2025.06.1213:10:54UTC+00Gold Rises on Weak US Data and Heightened Geopolitical Risk

Gold prices continued their ascent on Thursday, reaching approximately $3,390 per ounce—the highest level since early May. This upward trend comes in response to softer US economic data along with escalating geopolitical concerns. In May, the US Producer Price Index showed a modest increase of just 0.1%, falling short of the anticipated 0.2%. Meanwhile, initial jobless claims remained at an eight-month high, and continuing claims rose to their highest level since November 2021, both figures surpassing market predictions. These indicators of a cooling labor market, combined with weaker-than-expected Consumer Price Index (CPI) and Producer Price Index (PPI) results, have bolstered market speculation about a potential Federal Reserve interest rate cut as early as September, with a 50 basis point reduction now expected by 2025. On the geopolitical stage, the US government has ordered embassy staff to exit Baghdad following threats from Iran to target US bases should nuclear negotiations fail. Further adding to the uncertainty, President Trump announced plans to issue letters to major trading partners within weeks, detailing new unilateral tariffs.