Disappointing US Jobs Data Sparks Gold and Silver Rally

Spot gold and silver prices rose on Friday as investors reacted to disappointing US jobs data. The September employment report showed nonfarm payrolls increased by just 29,000, far short of forecasts between 88,000 and 90,000.

The unemployment rate climbed to 4.2%, while average hourly earnings edged up 0.1% month over month and 3.0% year over year. July and August payroll figures were revised down by a total of 60,000 jobs.

As a result, October Fed-hike odds dropped to the mid-teens from about one-in-four chance before the data. The 10-year Treasury yield retreated toward the 5.2% level, and US stock futures climbed.

The weaker labor-market reading allowed gold and silver to recoup some of their rate- and dollar-driven declines this week.