Gold prices see sold bid as U.S. economy created 29k jobs in September
Gold prices have risen following a disappointing U.S. jobs report that showed only 29,000 new nonfarm payrolls in September. The data has fueled speculation that the Federal Reserve may need to pivot its interest rate policy sooner than expected.
Why it matters
The shift in labor market data impacts investor sentiment and monetary policy expectations, driving capital toward safe-haven assets like gold.
(Kitco News) - The gold market is seeing solid bullish momentum on renewed safe-haven demand as the U.S. labor market saw significantly slower growth in September.
U.S. nonfarm payrolls rose by 29,000 last month, according to the Bureau of Labor Statistics. The monthly figure significantly missed consensus forecasts, as economists had expected job gains of around 89,000.
At the same time, the unemployment rate ticked higher to 4.2%. Economists had expected an unchanged reading of 4.1%.
Analysts had expected to see a strong move in gold if the employment numbers were weaker than expected, and they have not been disappointed. Spot gold last traded at $4,223 an ounce, up 1% on the day.
In comments to Kitco News, Artem Bakushev, Head of Risk at Monaxa, said gold could see further upside as the U.S. dollar struggles in the face of a potential shift in interest rate expectations.
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