Gold Prices Plummet as Strong Jobs Report Boosts Rate Hike Expectations

Gold and silver prices took a hit on September 5 after a strong jobs report in the US. The report showed that employers created 162,000 new positions in August, far exceeding expectations of 56,000. This caused the dollar to rise and Treasury yields to tick up, which dampened demand for assets with no interest income.

According to Ian Cooper, the sell-off was due to the strong payrolls report, which raised the chances of another Fed rate hike. As rates increase, it becomes more expensive to hold gold.

The price drop was sudden, with $790 billion vanishing from the value of gold and silver in less than 15 minutes, according to Ash Crypto's chart. This sent the crypto industry into a panic.