FX.co ★ Gold Falls as US Rate-Cut Odds Fade

Gold prices dipped to approximately $4,060 per ounce on Friday, poised for a slight weekly decline. This movement comes as anticipation of a Federal Reserve rate cut in December diminished in light of the recent jobs report. The eagerly awaited Labor Department report, delayed due to the government shutdown, revealed an increase in nonfarm payrolls of 119,000 for September, surpassing the projected 50,000. Analysts suggest that this data supports the Fed’s October evaluation of a labor market that is decelerating yet stable. Simultaneously, the unemployment rate climbed to 4.4%, marking its peak since October 2021, and exceeding the anticipated 4.3%. Additionally, wage growth slightly outpaced expectations, registering at 3.8%. The Bureau of Labor Statistics will forgo the October employment report, consolidating its findings into the postponed November report. Furthermore, several Federal Reserve officials have advocated for a cautious approach regarding rate cuts, with traders currently estimating only a 40% likelihood of such an adjustment next month.