Strong Jobs Report Slams Gold and Silver Prices

The latest jobs report in the US showed that nonfarm payrolls rose by 162,000 in August, exceeding expectations and pushing Treasury yields higher. As a result, spot gold prices fell 0.96% to $4,429.40 an ounce, while spot silver prices dropped 1.21% to $66.040.

The stronger-than-expected employment report also firmed the US dollar and revived expectations that the Federal Reserve could raise interest rates at its upcoming meeting on September 15-16. This shift in sentiment is evident in the Fed-hike pricing, which has moved back into the 60% to 65% area.

The jobs report has shifted the market away from the pause trade led by Waller and towards the view that inflation remains a dominant risk. As such, gold and silver sold off with the rates trade but finished near their session lows.