Gold ends higher after US economic data release

Gold prices finished in the green today, May 31, with markets assessing the path of monetary policy in light of mixed economic data.

The US dollar extended gains after data from the Bureau of Labor Statistics showed the number of job openings in the US unexpectedly rose in April, climbing to 10.103 million in April.

This came following the addition of 358,000 jobs compared to the month before, against economists’ expectations for 9.37 million opportunities. This suggested the Federal Reserve's tendency for further monetary tightening.

Elsewhere, the Institute for Supply Management's Chicago Purchasing Managers Index (PMI) fell to 40.40 points in May — the ninth consecutive month of contraction, versus April's 48.60 reading, renewing recession fears in the world's largest economies.

On the other hand, the US congress is scheduled to vote today on the bill to suspend the debt ceiling, following its earlier approval by the House Rules Committee. This is in light of a possible strain amid the objection of some Republicans.

Financial markets are pricing in an almost 67% chance of the US central bank keeping its policy rate unchanged at its June 13-14 meeting. The remainder see rates lifted by another 25 basis points, according to the CME’s FedWatch Tool.

In terms of trading, bullion for August delivery added 0.30%, or $5, to end at $1,982.10 an ounce.

Further, the US dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.30% to 104.45 points at 08:40 pm Makkah time.