02.10.202612:51:43UTC+00Gold Rebounds Above $4,200 on Weak US Jobs Data

Gold rose back above $4,200 an ounce on Friday after weaker-than-expected US employment data strengthened expectations that the Federal Reserve will leave interest rates unchanged at its upcoming meeting. The US economy added just 29,000 jobs in September, far below the consensus forecast of 90,000, following a downwardly revised increase of 133,000 in August. The unemployment rate edged up to 4.2%, while annual wage growth unexpectedly slowed to 3.0%, its weakest pace since May 2021.

The softer labor-market figures further dampened the likelihood of an interest-rate hike in October. Money markets are now assigning less than a 15% probability to a rate increase this month, though the odds of a hike in December remain above 70%. Expectations for additional tightening had already eased after comments from Fed Vice Chair Philip Jefferson and New York Fed President John Williams, who signaled that policymakers should allow more time to evaluate whether further rate increases are needed to bring inflation under control.