Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 232,000 for the week ended August 17, the Labor Department said on Thursday. 

The result is slightly higher than the expected 230,000 persons, leading to yesterday's drop due to a slight increase in recession fears. Jackson Hole is the key event to focus on this week. The market has priced in rate cuts in September, and the current volatility is caused by uncertainty about the magnitude of these cuts—either 25 or 50 basis points. Therefore, Powell's speech on the magnitude will largely determine how the market behaves in the coming weeks. We expect a slightly hawkish statement, with a hint of a 25 basis-point rate cut, as a 50 basis-point cut might alarm consumers and lead them to fear a recession. A more severe scenario is also possible, in which there are no rate cuts in September. After beating some data estimates and the strong performance of retail stock earnings, which indicate that the economy is still doing well, we cannot ignore the risk that the Fed may choose to observe further and maintain the current rates at September's FOMC. If that happens, there could be chaos in the market.

Anyway, there's no need to be too worried, as gold is still in an uptrend and remains well above the support line. Two more important data points are set to be released next week on August 30th: the PCE and the unemployment rate. Both are key indicators considered by the Fed in their interest rate decisions. These releases could be another turning point for the market or serve as a catalyst to sustain the current surge.

At Mercury Gold, we offer a wide range of gold bars and coins for sale in Malaysia to suit your investment needs. As a trusted source for physical gold bullion in Malaysia, we also provide secure and convenient options, including gold savings accounts (Mercury Bullion Savings (MBS) program) which starts at just RM50. Discover the best place to buy gold in Malaysia with Mercury Gold, offering competitive prices and expert guidance on where and when is the best time to buy gold in Malaysia. Explore our platform to buy gold Malaysia online, to enjoy an easy and reliable experience. Invest with confidence and let Mercury Gold be your partner in building your investment goal.

Click here to view more.