Weak Payrolls Gold Rate Relief
Weaker-than-expected nonfarm payrolls reduce expectations of imminent Federal Reserve rate increases, supporting risk asset demand
Too little corroboration in the last 3 days to call a trend (9 articles). Watching for it to gain traction.
Mainstream financial press is carrying this — attention has broadened beyond specialist outlets.
"Markets have reduced their bets on a September Federal Reserve rate hike to 48% following Friday's weaker-than-expected jobs report."
"Weak July jobs data released on Friday prompted markets to scale back bets on a Fed rate increase the following month and sent gold up 2.4%. Gold is still fairly well bid at this point in the wake of last week's jobs data disappointment, which eroded expectations for a rate hike in September."
"The recent US labour-market weakness has strengthened expectations that the Federal Reserve could keep interest rates lower. Lower rates typically support gold because bullion does not generate interest income, making it relatively more attractive when yields fall."
"U.S. nonfarm payrolls fell by 23,000 jobs last month after a downwardly revised increase of 20,000 in June. The weaker-than-expected jobs data presents a scenario where the Fed may not raise interest rates at its next meeting."
"A softer jobs reading could reinforce expectations of monetary easing, while stronger-than-expected data could push yields and the dollar higher and weigh on gold."
"Gold ripped 4% higher to $4,233.89 an ounce on Wednesday, its biggest one-day advance since February, as a soft private payrolls report and easing energy costs knocked down the odds of another Federal Reserve rate hike."
"The rally came after softer-than-expected U.S. nonfarm payrolls and private payrolls data eased concerns over persistent inflation and the prospect of interest rates staying higher for longer. Data from the U.S. Labor Department's Bureau of Labor Statistics showed nonfarm payrolls increased by 57,000 jobs last month, well below economists' expectations of 110,000."
"Bullion prices climbed in early trade on July 3 as the US dollar weakened after a softer-than-expected June jobs report dampened expectations of near-term Federal Reserve rate hikes, thereby supporting precious metals."
"Gold and silver further advanced as the market mood went up following the US labor report. The action came after the weaker payrolls, as these lowered the expectations of an imminent Federal Reserve rate increase."