US Jobs Report Falls Short, Weighing on Markets

The US labor market cooled in September, according to the latest employment report. Employers added just 29,000 jobs, falling short of economists' expectations of 84,000. The unemployment rate rose to 4.2% from 4.1%, while the labour force participation rate edged up to 61.8%. July and August's job gains were also revised downward.

The weak report strengthened expectations that the Federal Reserve will keep interest rates unchanged in October. Market participants had been pricing a 25% chance of an October rate hike, down from about 70% earlier in the week.

Gold prices fell despite the weaker-than-expected jobs data, as a stronger dollar and higher Treasury yields outweighed any support from the report. Spot gold declined 0.75% to $4,146.54 an ounce, while US gold futures settled 0.59% lower at $4,177.50.

Oil prices were mixed after European countries agreed to release additional diesel stockpiles. West Texas Intermediate fell 1.72%, to $91.28, but Brent crude reversed its initial loss and was trading 0.24% higher at $102.56.