Gold for December delivery on the Comex jumped $13.30 or 1.2 percent to $1,127.0 per ounce after the release of the September US non-farm employment report fell short of expectations.
The US economy added 142,000 jobs in September, below the forecast of 201,000, and the August figure was revised down to 136,000 from 173,000.
Wage growth was stagnant – labor market slack has not taken in, as the decline in the participation rate to 62.4 percent from 62.6 percent shows. Major gains in health care and information were offset by struggles in the manufacturing sector.
FastMarkets’ William Adams said. “We think this increases the chance that the Fed does not move this year, which should reduce some of the concerns that higher US rates would have a negative impact on emerging markets.”
Investors agree with Adams’ sentiment, with the perceived likelihood of the Federal Open Market Committee (FOMC) raising rates in the near term plummeting on the release of the report.
It is not until April that most market participants believe the FOMC will raise rates
Falling commodities prices and waning Chinese demand caused the manufacturing sector to shed 205,759 jobs over the last three months – the worst third quarter since the height of the Great Recession in 2009
All Things Considered – John’s Commentary:
Volatility is only going to increase. Many investors feel conflicted and don’t know how to react to all of these market fluctuations.
We welcome the opportunity to discuss the market prognosis and establish a plan with our clients. Feel free to call us.
