Gold Holds Near $4,181.80 as Jobless Claims Temper Fed Rate Hike Expectations

Spot gold traded up 0.62% around $4,181.80 per ounce, having traded at $4,182.50 earlier Thursday, as softer inflation prints reduced expectations of an imminent Federal Reserve rate hike. Market pricing for an October rate increase dropped to around 37% from roughly 70% earlier in the week following soft PCE data. However, bullion's upside remained constrained by rising bond yields, with the 10-year U.S. Treasury yield reaching 5.34%. Labor market reports conflicted, with one source reporting weekly initial jobless claims at 297,000 and another stating claims dropped unexpectedly to 197,000.