Gold Price Surges to $4,367 Amid Weak Job Numbers and Slowing Fed Rate Hike Expectations
The gold price has made a strong comeback in recent days, reaching its highest level since July 17 at $4,367. This represents a 10% increase from its year-to-date low.
The rebound came after the US Bureau of Labor Statistics released a weak non-farm payrolls report, which showed the economy lost 23,000 jobs last month, missing expectations of 85,000 new jobs. The poor job numbers dragged down US bond yields, with the ten-year yield falling to 4.65% and the five-year note dropping to 3.80%. This has led investors to scale back their expectations for Federal Reserve rate hikes.
The weak labor market data also caused a decline in the US Dollar Index (DXY), which dropped by over 2% from its year-to-date high. Gold's technicals suggest that it may continue rising, with the metal having formed a double-bottom pattern at $3,940 and breaking above its neckline at $4,200.