Gold Rebounds Above $4,200 on Weak US Jobs Data
Gold climbed back above $4,200 an ounce on Friday after weaker-than-expected US jobs data reinforced expectations that the Federal Reserve may keep interest rates unchanged at its upcoming meeting. The US economy added just 29,000 jobs in September, well below expectations of 90,000, following a downwardly revised gain of 133,000 in August. The unemployment rate rose to 4.2%, while annual wage growth slowed unexpectedly to 3.0%, its weakest level since May 2021. The softer labor-market data has further reduced expectations of an October rate hike. Money markets are now pricing in less than a 15% chance of a rate increase this month, while the probability of a hike in December remains above 70%. Rate-hike expectations had already fallen following comments from Fed policymakers Vice Chair Philip Jefferson and New York Fed President John Williams, who indicated that policymakers should take more time to assess whether further rate increases are necessary to bring inflation under control.
Story updates
Gold climbed back above $4,200 an ounce on Friday after weaker-than-expected US jobs data reinforced expectations that the Federal Reserve may keep interest rates unchanged at its upcoming meeting. The US economy added just 29,000 jobs in September, well below expectations of 90,000, following a downwardly revised gain of 133,000 in August. 0%, its weakest level since May 2021. The softer labor-market data has further reduced expectations of an October rate hike.
Money markets are now pricing in less than a 15% chance of a rate increase this month, while the probability of a hike in December remains above 70%. Rate-hike expectations had already fallen following comments from Fed policymakers Vice Chair Philip Jefferson and New York Fed President John Williams, who indicated that policymakers should take more time to assess whether further rate increases are necessary to bring inflation under control.