Gold price peaks at $2,477 before falling to $2,430, down 0.60%.
US Nonfarm Payrolls miss expectations, Unemployment Rate rises, and Average Hourly Earnings dip.
Weak economic data fuels speculation of Fed rate cuts in September, with US 10-year Treasury yield dropping to 3.815%.
Gold prices are under pressure after hitting a two-week high of $2,477 earlier during the North American session. Data showed that the US jobs market feels the effects of higher borrowing costs set by the Federal Reserve as the number of Americans applying for work dipped. This bolstered the golden metal, which rallied over 1% before retreating. The XAU/USD trades at $2,430, down 0.60%.
Wall Street’s trade with substantial losses, as most equity indices plunged at least 2.20% after the US Bureau of Labor Statistics (BLS) revealed that July’s Nonfarm Payrolls (NFP) figures missed the mark, while June data was revised downward.
Given the backdrop of a dismal Manufacturing PMI report revealed by the Institute of Supply Management (ISM) on Thursday, which was still digested by traders, along with today’s NFP figures, the chances that the Fed might lower interest rates at the September meeting are increasing.
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