[New York Gold Prices] Fall 0.6% as Nonfarm Payrolls Surge Unexpectedly

(New York=Yonhap Infomax) Jin Woo Choi – International gold prices declined as stronger-than-expected U.S. nonfarm payroll data dampened hopes for a Federal Reserve rate cut.

September nonfarm payrolls far exceeded market forecasts, leading to a pullback in expectations for monetary policy easing by the Federal Reserve (Fed).

Gold, which does not yield interest, tends to be favored in low-rate environments.

As of 12:30 p.m. local time on the 20th, December gold futures (GCZ5) on the Chicago Mercantile Exchange (CME) COMEX division were trading at $4,058.80 per troy ounce, down $24.00, or 0.59%, from the previous settlement price of $4,082.80.

The U.S. Department of Labor reported that nonfarm payrolls increased by 119,000 in September from the previous month, more than double the market consensus of 50,000.

Although the unemployment rate edged up by 0.1 percentage point to 4.4%, the metals market remained focused on the robust job growth figures.

Bart Malek, Global Head of Commodity Strategy at TD Securities, commented, "Given that the data showed stronger-than-expected job gains, there is little reason to believe the Fed will move to aggressively ease monetary policy."

Peter Grant, Chief Metals Strategist at Zaner Metals, noted, "The data points to a stable labor market. The likelihood of a rate cut in December now appears increasingly remote, which is putting pressure on gold prices."

jwchoi@yna.co.kr

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