Gold price jumps on weak US jobs data
New York (Oct 2) The US economy created just 142,000 new jobs in September, much lower than the anticipated 200,000. Gold was trading almost 2.5% higher to US$1,140.
Gold shot higher today after the release of the US non-farm payroll figures sent analysts and investors into a frenzy.
The U.S. economy created just 142,000 new jobs in September, much lower than the anticipated 200,000.
And the number of new hires in August and July was also revised lower, suggesting the US economy is not as healthy as once thought.
It throws further doubt on the timing of the Federal Reserve’s long-awaited interest rates.
“The US economy seems fairly resilient but, with employment data particularly disappointing for a second month running, enthusiasm for a rate hike in the short term will surely be tempered,” said Dennis de Jong, managing director of UFX.com.
He is backed up by the Fed futures index, which measures the likelihood of a rate hike.
Only a quarter of people now believe a rate hike is imminent, with more than half not anticipating a rise until March next year.
One of those not anticipating a hike this year is Christopher Vecchio, currency analyst, at DailyFX.
He said: “It might be time to put a pin in hopes for the Federal Reserve to raise rates in 2015.”
Gold was trading almost 2.5% higher to US$1,140.
Elsewhere, silver jumped 4% to US$15.09 while platinum was flat at US$904.