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Gold slips near $4,410 as stronger US jobs data boosts Fed hike odds
Gold extended its decline after August nonfarm payrolls rose 162K, keeping the US unemployment rate at 4.1% and lifting expectations for a Fed rate hike next week.
Gold prices were lower in early Asian trading on Tuesday, drifting to around $4,410, as a stronger-than-expected US jobs report renewed expectations for Federal Reserve tightening.
According to FXStreet, US nonfarm payrolls increased by 162K in August, above both the prior upwardly revised figure of 21K and the market consensus of 56K, while the unemployment rate held steady at 4.1%. Traders, using the CME FedWatch tool, priced in about a 60% chance of a hike at the Fed’s policy meeting next week, up from 50% before the jobs data was released on Friday.
FXStreet also pointed to the broader market reaction, noting that the jobs report lifted bond yields and reinforced expectations for a September 16 rate move, which weighed on the US dollar and pressured the dollar-denominated metal.
Further market direction may come from later releases of US PPI and CPI inflation data, while Saxo Bank’s Ole Hansen said gold and silver have been moving opposite energy prices, extending their declines after the jobs-driven yield rise. The article also cited nearby technical levels for spot gold, with resistance around $4,465 and support near the 100-day SMA around $4,350.
Latest closeGold $4,431.70 ▲1.9%|Silver $65.91 ▲2.0%