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Gold slips after weak US jobs data, holding above $4,300
Gold pulled back after US Nonfarm Payrolls showed a 23K jobs loss in July, and the move comes as traders keep odds of a Fed year-end rate hike elevated via the CME FedWatch tool.
Gold prices drifted lower at the start of the week, moving away from the highest level seen since June 17, after the US Nonfarm Payrolls report turned weaker than expected.
The US economy unexpectedly lost 23K jobs in July, and the prior month was revised down to 20K from 57K, which pointed to a cooling labor market. That outlook weighed on the case for additional Federal Reserve rate increases, initially lifting the US dollar and pressuring non-yielding bullion.
However, the decline appears constrained by ongoing Middle East uncertainty, including conditions Iran reiterated for reopening the Strait of Hormuz. The geopolitical risk premium has supported the dollar, while the US-Iran standoff also acts as a tailwind for crude, adding concern that higher energy prices could rekindle inflation and push central banks toward a more hawkish stance.
Market pricing remains sensitive to US data, with CME Group's FedWatch tool indicating traders are still assigning a greater chance of a US rate hike by year-end. Technically, support sits just above $4,300, with a break below that level potentially triggering further selling, while gold is still below key longer-term indicators, including the 200-day SMA.
Latest closeGold $4,292.00 ▲1.1%|WTI crude $78.07 ▲3.8%