menu-control
The Jerusalem Post
The Jerusalem Post: Business and Innovation

Gold prices dip on strong U.S. jobs report

 
Gold prices dip on strong U.S. jobs report (photo credit: SHUTTERSTOCK)
Gold prices dip on strong U.S. jobs report
(photo credit: SHUTTERSTOCK)

Lower unemployment print reignites talks about inflationary pressures and the Federal Reserve’s focus on jobs.

Nonfarm payrolls increased by 254,000 jobs in September over a forecasted gain of just 150,000 and the unemployment rate retracted from 4.2% to 4.1%, according to jobs data released by the U.S. on Friday.

DOW Jones futures jumped 200 points and gold surrendered $17 an ounce to trade at $2,638 following the news.

 This shows the reaction of the gold market to the U.S. jobs report. (Source: TradingView) (credit: PR)
This shows the reaction of the gold market to the U.S. jobs report. (Source: TradingView) (credit: PR)

Inflation talk begins again

The unexpectedly strong report reignited a discussion among pundits on whether or not the Federal Reserve has shifted its focus away from inflation and toward the job market too quickly.

Saira Malik, head of global equity portfolio at TIAA Global Asset Management, said on CNBC that the new report could give the Fed reason to pause and reevaluate its shifted priorities.

“(This report showed) the August rebound in payrolls was not a blip,” she said. “What does this mean for the Fed in November? I think we’re moving back to a 25 basis point cut instead of 50 in November, but the market has been pretty defensive recently and that’s because the market is worried about geopolitical issues, oil prices increasing … I think the Fed needs to move back to more balance. It’s not just about the labor market; it’s about inflation too, moving forward.”

Silver prices moved lower along with gold, dropping $0.52 an ounce to $31.68, a 1.63% loss in about 30 minutes of trading following the report.

 This shows the reaction of the silver market to the U.S. jobs report. (Source: TradingView) (credit: PR)
This shows the reaction of the silver market to the U.S. jobs report. (Source: TradingView) (credit: PR)

CNBC senior economics reporter Steve Liesman said he doesn’t feel the jobs report means inflation is automatically ramping back up.

“The story for the Fed here is if you have the labor supply to meet the labor demand, that is not inflationary,” he said. “What’s why rates should continue to come down, but as Rick (Santelli) pointed out, not in 50-point increments.”

Santelli bucked Liesman’s comments saying inflation fears should be taken more seriously.

“Listen, there’s not the type of wage inflation spiral that I saw 35 or 40 years ago, but there definitely does seem to be, under the surface, that dynamic. I think the Fed will have an inflation problem, not that it’ll be huge, but it will bounce around and have some life,” he said.

Featured Partners (Ad)

Augusta Precious Metals

Fees:

$0 (10 Years)

Minimum:

$50,000

"Best Overall" by Money Magazine, Award-Winning for 6 Years, Thousands of 5-Star Rankings

Expand DetailsRenowned for its exceptional customer service and commitment to transparency, Augusta Precious Metals has garnered numerous accolades, including "Best Overall" from Money magazine and "Most Transparent" from Investopedia. The company's dedication to educating and supporting its clients has earned it top ratings from organizations such as A+ from BBB and AAA from BCA.

Goldco

Fees:

Vary

Minimum:

$25,000

Industry leader with over $2 Billion in gold and silver. Top rated precious metals company with buy back guarantee

Expand DetailsFrom precious metals iras to direct purchases of gold and silver, goldco have helped thousands of americans place over $2 billion in gold and silver. Top-rated precious metals company rated A+ by the better business bureau rated triple a by business consumer alliance earned over 6,000+ 5-star customer ratings Money.Com 2024 best customer service 2024 inc. 5000 regionals: pacific ranked #17 2024 gold stevie award, fastest growing company inc. 5000 award recipient, 8+ years

American Hartford Gold

Fees:

Vary

Minimum:

$10,000

American Hartford Gold, ranked #1 Gold Company on Inc. 5000, boasts thousands of A+ BBB ratings and 5-star reviews, endorsed by Bill O'Reilly and Rick Harrison..

Expand DetailsWith over $2 billion in precious metals sold, American Hartford Gold helps individuals and families diversify and protect their wealth. Their expert team provides investors with the latest market insights and a historical perspective, ensuring informed decisions. Trusted by public figures and praised for exceptional customer service, the company offers competitive pricing on top-tier gold and silver coins, backed by a 100% customer satisfaction guarantee

This article is for informational purposes only. The opinions and analysis herein are those of the author and are not financial advice. The Jerusalem Post (JPost.com) does not endorse or recommend any investments based on this information. Investors should consider their financial situation, investment goals, and risk tolerance before making any decisions. Consulting a qualified financial advisor is recommended. JPost.com is not liable for any investment losses from using this information. The information provided is for educational purposes only and should not be considered as trading or investment advice.

×
Email:
×
Email: