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September 6, 2021

High Gold Tossed NFP!

 Gold prices traded steady on Monday after soaring to a two -and -a -half -month high following a disappointing reading of US NFP jobs data.


At the start of the European session, the gold spot strengthened at $ 1,827 per ounce, down slightly from the high it reached at the end of the week at $ 1,833 per ounce. Gold futures traded at $ 1,829 an ounce.


Job creation in the U.S. declined significantly in August, with only 235,000 jobs added from 943,000 recorded in July, and also missed expectations for an increase of 720,000.



Nevertheless, the unemployment rate met market projections by falling to 5.2% last month from 5.4% recorded previously.


This lackluster reading has led the market to expect the Federal Reserve (Fed) to delay the announcement for a reduction in their bond purchases at this month’s policy meeting on September 22nd.


Members of the Federal Open Market Committee (FOMC) will certainly evaluate the data released in August before determining whether the job market is sufficient to support the mitigation factor.


Chairman Jerome Powell signaled last month that achieving full employment is a prerequisite for the central bank to begin reducing its bond purchases.