Weak Payrolls Report Boosts Gold and Silver Prices Amid Fed Hike Uncertainty
The release of the September employment report has sent shockwaves through financial markets, causing spot gold and silver prices to rise. Nonfarm payrolls rose by just 29,000, far below the estimated 88,000 to 90,000, while the unemployment rate increased to 4.2%. The disappointing labor-market signal pulled Treasury yields lower and trimmed October Fed-hike expectations.
The weak payroll numbers helped gold recover some of its losses from earlier in the week, with spot prices reaching $4,216.80 an ounce, up 0.96% from the previous day. Silver also saw a significant increase, with spot prices rising by 1.45% to $61.750.
The Strait of Hormuz story continues to pose inflation and risk-premium concerns, with crude exports largely recovered but refined-product flows remaining impaired. This situation is keeping oil-linked inflation pressure on the Fed and supporting safe-haven demand for gold.