Gold Gains After U.S. Jobs Data Comes in Well Below Estimates

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imageCommodities5 hours ago (Sep 03, 2021 14:04)

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© Bloomberg. A worker loads 12,5 kilogram gold ingots onto a trolley ready for distribution at the JSC Krastsvetmet non-ferrous metals plant in Krasnoyarsk, Russia, on Monday, July 12, 2021. Gold headed for its second decline in three sessions as strength in the dollar and equities diminished demand for the metal as an alternative asset. Photographer: Andrey Rudakov/Bloomberg

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(Bloomberg) — Gold jumped after a key labor-market report showed the U.S. economy added fewer jobs than forecast, diminishing the possibility the Federal Reserve will taper stimulus soon. 

Nonfarm payrolls data showed the U.S. added 235,000 jobs in August, well below economists’ forecasts and far less than the gains seen last month. The dollar sank after the report, boosting gold.

Bullion has struggled this year amid a global economic rebound from the pandemic, which has raised the prospect of central banks reining in their monetary stimulus. In 2020, gold surged to a record on a wave of investor money into exchange-traded funds, though holdings have since fallen.

The focus will now turn to economic data released ahead of the Fed’s meeting later this month. Any more indications the U.S. economic recovery is stuttering may give the central bank cause to delay tapering its asset purchases. Chair Jerome Powell said last week a reduction in monthly bond purchases this year could begin this year, with the labor market making “clear progress.”

Spot gold rose 0.9% to $1,825.99 an ounce by 1:35 p.m. in London. Silver also gained.

©2021 Bloomberg L.P.

Gold Gains After U.S. Jobs Data Comes in Well Below Estimates

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