Gold climbed on Friday, adding to its roughly 4% surge for August, after a closely watched snapshot of the U.S. job market revealed tepid late-summer hiring and almost no paycheck growth.
The report keeps alive the close debate over whether the Federal Reserve has a green light to raise interest rates again this year given still-concerning low inflation readings, including within wage data.
“A weaker-than-expected U.S. employment report that put strong selling pressure on the U.S. dollar index is boosting the precious metals markets,” said Jim Wyckoff, senior analyst with Kitco.
…“In our view, a strong rebound in inflation is needed before rate-hike expectations rise materially and help the dollar reverse its latest downtrend,” said Charalambos Pissouros, senior analyst with IronFX. “The minutes of the [Fed’s] July gathering showed that the number of policymakers who are concerned with regards to inflation has increased, while data after that meeting showed inflation remained subdued, casting more doubts on whether the softness in recent months can indeed be attributed to idiosyncratic factors.”