Gold price drops to $2,420 after peaking at $2,477, down nearly 0.80%.
US Nonfarm Payrolls for July miss expectations, unemployment rate rises to 4.3%.
Treasury yields and USD plunge, prompting banks to anticipate faster Fed rate cuts.
Gold price reversed its course and tumbled almost 1% after hitting a two-week high of $2477 following weaker-than-expected data from the United States (US). This weighed on the Greenback and sent US Treasury yields plummeting as investors expected the Federal Reserve could cut rates faster than they thought. The XAU/USD trades at $2,420 at the time of writing
XAU/USD whipsaws as disappointing US economic indicators weigh on the Greenback and Treasury yields
Friday’s US Nonfarm Payrolls figures disappointed investors, which were still digesting a dismal ISM Manufacturing PMI report that spurred concerns about the health of the US economy.
The US Department of Labor revealed that 114K people were added to the workforce in July, missing estimates of 175K, and the previous figures were downward revised from 206K to 179K. Further data showed the Unemployment Rate ticked up from 4.1% to 4.3% and Average Hourly Earnings dipped a tenth from 0.3% to 0.2%
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