Commodities
Home›Commodities›Precious Metals›Gold hits seven-week high after US payrolls fall
Gold hits seven-week high after US payrolls fall
July nonfarm payrolls declined by 23,000, pushing Comex December gold up 2.3% to $4,401 an ounce and September silver up 3.6% to $63.85.
Gold surged to a seven-week high and silver climbed sharply after US employment data showed a surprise payroll decline in July, weakening the case for an additional Federal Reserve interest rate increase.
Comex December gold rose 2.3% to $4,401 an ounce by 10:03 a.m. New York time, its highest level since mid-June. September silver jumped 3.6% to $63.85 an ounce, also reaching a seven-week high, as traders repriced September rate expectations following the report.
US nonfarm payrolls fell by 23,000 in July versus expectations for an increase of about 80,000, with June and May results revised down. The unemployment rate edged down to 4.1%, while labor-force participation slipped to 61.4%, the lowest in more than five years, and interest-rate markets moved after the data, with Treasury yields falling and US equities advancing.
The rally reflected the typical sensitivity of bullion to lower rate expectations, since gold and silver pay no yield and become relatively more attractive when interest-bearing returns decline. Falling yields can also weigh on the US dollar, lowering the effective cost of metals for buyers using other currencies, Mining.com reported.
Latest closeGold $4,292.00 ▲1.1%|Silver $61.56 ▼0.9%