Gold Price Plummets on Weak Jobs Report

The gold price plummeted over 3% this week due to weak U.S. employment data, settling near recent lows as investors await the next rate decision from the Federal Reserve.

The U.S. Bureau of Labor Statistics reported that 29,000 jobs were created in September, significantly missing expectations, with the unemployment rate rising to 4.2% and average wages increasing only 0.1%.

Simon-Peter Massabni, Head of Business Development at XS.com, noted that gold's disappointing price action reflects a market caught between a weakening economy and elevated yields and inflation, while Bill Adams, Chief U.S. Economist at Fifth Third Commercial Bank, stated that the September jobs report was not weak enough to shift the Fed's focus away from inflation.

Economists expect headline geopolitical risks to dominate price action next week, with key reports including the ISM Services PMI and the minutes from the Federal Reserve's September monetary policy meeting.