Gold futures rise as data show a slowdown in U.S. job gains – Market Watch

UNITED STATES, Sept. 1 – Silver, copper futures trade higher for the session and week Gold futures rose on Friday, with prices likely to end the week higher, as monthly U.S. employment data reveal a slowdown in job gains, easing expectations of further interest-rate hikes by the Federal Reserve.

Price action

Market drivers

Much-anticipated data from the Labor Department revealed that the U.S. economy added 187,000 jobs in August. That came in above economist expectations for a gain of 170,000, but still showed a slowdown in the pace of job gains. The unemployment rate climbed to 3.8% from 3.5% in July, Market Watch learnt.

The jobs report should “add to Fed-pause-pivot expectations, pulling Treasury rates and the U.S. dollar lower, both factors which could push gold prices higher over time,” Jeff Klearman, portfolio manager at GraniteShares, which runs the GraniteShares Gold Trust BAR, told MarketWatch.

Still, the “slightly higher-than-expected wage growth may act to somewhat offset the impetus provided by the lower-than-expected headline jobs created number,” he said.

The increase in pay over the past year fell a tick to 4.3%. Fed officials want to see wage growth slow to pre-pandemic levels of 3% or less.

The U.S. dollar weakened in Friday dealings, with the ICE U.S. Dollar index DXY down 0.2% at 103.45 but Treasury yields were mixed, with 10-year Treasury yield BX:TMUBMUSD10Y moved up to 4.15% from 4.09% on Thursday afternoon.

Gold prices look likely to finish higher for the week, with that strength “mainly the result of slightly weaker-than-expected economic data released over the last couple of weeks,” said Klearman.

“Tuesday’s weaker-than-expected consumer confidence release and the JOLTS report, combined with Wednesday’s revised-lower GDP release, helped increase expectations of a Fed pause through the end of year, pushing 10-year Treasury rates and the U.S. dollar off their recent highs and, as a result, buoying gold prices,” he said.” More of the same occurred with an as-expected PCE Price Index release Thursday showing inflation — measured month over month — is near Fed-targeted levels.”