"Gold retreated on Friday, set to close the week in negative territory after two consecutive weekly gains, as diminishing expectations of a December Federal Reserve rate cut weighed on sentiment. The long-awaited US employment report showed nonfarm payrolls rising by 119,000 in September, more than double the consensus estimate of 50,000, while the lack of data for October added to the uncertainty over the decision of a data-driven Fed."
"The unemployment rate ticked up to 4.4%, the highest since late 2021, while wage growth surprised slightly on the upside at 3.8%, painting a mixed picture of the labor market. Adding to the pressure on gold, several Fed officials echoed a cautious tone, leading markets to price with a one-third probability of a December cut. Geopolitical risks could also contribute to the uncertainty."
Gold retreated and is poised to end the week in negative territory after two consecutive weekly gains as diminishing expectations of a December Federal Reserve rate cut weighed on sentiment. The US employment report showed nonfarm payrolls rising by 119,000 in September, more than double expectations, while the lack of October data added uncertainty for a data-driven Fed. The unemployment rate ticked up to 4.4%, the highest since late 2021, and wage growth rose to 3.8%, creating a mixed labor market picture. Several Fed officials expressed caution, leaving markets to price roughly a one-third chance of a December cut. Geopolitical tensions in the Middle East and uncertainty over an Eastern Europe ceasefire could further affect demand for safe-haven assets.
Read at London Business News | Londonlovesbusiness.com
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