Gold Soars, US Nonfarm Payrolls Fall Short of Expectations
Gold prices surged above US$4,100 per ounce on Thursday, recovering from an eight-month low. This increase occurred after the market reduced expectations for a Federal Reserve interest rate hike following weaker-than-expected US employment data.
The US economy added only 57,000 jobs in June, the lowest figure in four months and well below market expectations of 110,000. The leisure and hospitality sector lost 61,000 jobs, despite increased tourism activity due to the World Cup.
The unemployment rate unexpectedly fell to 4.2%, but this decline was due to some workers leaving the labor force. Meanwhile, annual wage growth edged up to 3.5%, indicating that wage pressures remain despite a weakening labor market.
Following the release of the data, Fed funds futures contracts predicted a September rate hike probability of less than 50%, down from 67%. Previously, Fed Chairman Kevin Warsh also stated that inflation expectations had declined, although he continued to emphasize the central bank's commitment to price stability.
Gold also received support from easing concerns about energy inflation. Increased oil shipments through the Strait of Hormuz and progress in indirect US-Iran talks pushed oil prices lower, thereby easing inflationary pressures and strengthening positive sentiment for gold. (gn)*
Source: Newsmaker.id
