U.S. Dollar Sinks on Weak Jobs Data as Gold Rises, Bitcoin Lags

The U.S. Dollar Index (DXY) hit a three-month low on Monday after new economic reports showed a decline in American employment. The Bureau of Labor Statistics reported that nonfarm payrolls fell by 23,000 in July, while earlier data for May and June saw a total downward revision of 103,000 jobs. The national unemployment rate reached 4.1%. This weak labor market data led traders to cut expectations for a September rate hike down to 30%, pulling down the dollar spot index for a third straight trading session.

The poor job numbers also contributed to a slowdown in consumer spending, as retail sales fell 0.6% in July. Meanwhile, annual consumer price growth cooled to 3.4%, with core inflation reaching 2.5%. In response, gold prices rose to $4,407 per ounce, completing a 9.3% gain over the past month.

Interestingly, Bitcoin did not follow the broader market trend, despite being an alternative store-of-value asset. Instead of rising with gold, it lost 0.5% of its value over the same period and rose only 1.9% on the day to trade near $64,038. Trading activity across digital asset platforms remained quiet, with Bitcoin logging just $12.6 billion in daily trading volume.