Gold Price Dives on Weak US Jobs Report: Will It Rebound to $4,200?
The price of gold has dropped by more than 3% this week to $4,137 an ounce after a weak U.S. employment report failed to meet expectations. The September jobs report showed that only 29,000 jobs were created, significantly less than the anticipated figure.
This news led to selling pressure in the gold market, causing prices to dip below recent lows. According to Kitco News, gold was unable to hold gains above $4,200 an ounce following the data release.
Simon-Peter Massabni, Head of Business Development at XS.com, stated that gold's disappointing price action reflects a market caught between a weakening economy and elevated yields and inflation.
Lukman Otunuga, Senior Market Analyst at FXTM, noted that $4,200 an ounce remains a key pivot level next week. A solid weekly close above this level could open the path towards the 100-day SMA at $4,280.