The US employment rate increased last September and the unemployment rate fell to 4.1%, further reducing the need for the Federal Reserve (the US central bank) to continue cutting rates of interest in significant proportions during its last two meetings this year. year.
Today, Friday, the Labor Department’s Bureau of Labor Statistics said in its closely watched employment report that nonfarm payrolls increased by 254,000 jobs last month after increasing by a revised 159,000 jobs to the increase in the previous August.
The unemployment rate fell to 4.1% from 4.2% last August.
The US central bank began the monetary easing cycle by slashing interest rates by half a percentage point last month.
Gold decline
Gold prices fell today, Friday, after jobs data, prompting traders to reduce their bets on a further cut in interest rates from the US Federal Reserve by 50 percentage points. basis at its meeting next November.
Gold fell in instant trading by 0.6% to $2,640.61 an ounce at 1:03 p.m. GMT, after hitting its highest level ever at $2,685.42 on September 26.
U.S. gold futures also fell 0.7% to $2,660.90.
Gold is considered a safe investment in times of political and financial uncertainty, and it also thrives in times of lower interest rates.
As for other precious metals:
- Silver fell 0.9% in spot trading to $31.74 an ounce, but is headed for a weekly gain.
- Platinum rose 0.3% to $993.40.
- Palladium rose 0.4% to $1,004.00.
The dollar rebounds
The dollar rose today, Friday, to its highest level in 7 weeks after US jobs data, and is on track for a weekly gain.
The dollar index – which measures the performance of the US currency – against 6 major currencies, reached 102.64 points, its highest level since August 16, after traders reduced their bets on the possibility of a drop in interest rates.
The euro fell to $1.0959, its lowest level since August 15.
The dollar rose to 148.80 yen, its highest level since August 16.
Improving economic data has prompted traders to reduce their bets on a reduction in borrowing costs by 50 basis points at the next central bank meeting.
According to data from CME Group’s Fed Watch, traders currently believe there is an 11% chance the Federal Reserve will cut interest rates by 50 basis points, down from a 28% chance expected earlier Friday.