Gold Prices Tumble Amid Strong Nonfarm Payrolls Data
The recent US non-farm payrolls report exceeded market expectations, leading to increased expectations of a Federal Reserve rate hike in September. This has resulted in a rise in the US dollar and US Treasury yields, putting pressure on gold prices.
According to data from the US Bureau of Labor Statistics, nonfarm payrolls increased by 162,000 in August, nearly triple the market expectation of approximately 56,000. The unemployment rate remained unchanged at 4.1%, while the labor force participation rate rose slightly to 61.6%.
The significant upward revision to previous employment data has also eased concerns over a rapid deterioration in the US labor market. However, gold prices have fallen due to the increased expectations of further Federal Reserve rate hikes and rising US Treasury yields.