Gold Holds Firm Against Rate Hike Odds Amid August Job Creation Surprise

The US Labor Department's non-farm payroll report for August caused a temporary decline in gold and silver prices. The report showed 162,000 jobs were created in August, beating consensus forecasts of just 55,000. This increased the chances of a rate hike later this month, with the odds now pricing in a 65% chance of a September hike.

Gold futures fell by $43 or 0.95%, and silver futures declined by $0.74 or 1.11%. However, gold's decline was contained within a 15-minute period, and it recovered to hold above the critical support level of $4,474.

This support level is formed by a historical area of support and resistance dating back to the end of 2025. It also aligns with the simple 100-day moving average of $4,468 and the 38.2% Fibonacci retracement at $4,474.

As long as gold can defend this level, it will most likely continue higher. The technical aspects are neutral for silver, which may still be within its second wave and could continue to take prices lower.