Gold spikes over 1% on Friday’s job report, adding to climb earlier in the trading day that was sparked by Federal Reserve policymakers signaling that they might need more time to consider their next moves on interest rates.
Nonfarm payrolls rose by just 29,000 in September, per the Bureau of Labor Statistics report, well below the 84,000 forecast. Wage growth slipped to its lowest annual level since May 2021. The weaker-than-expected US jobs data eased concerns about a Federal Reserve rate hike this month, leading to yellow metal’s rise, although a stronger dollar and elevated Treasury yields kept bullion on track for a weekly loss.
The Fed closely watches both inflation and the labor market when setting monetary policy. Earlier this week, the Fed’s favorite inflation measure, personal consumption expenditures price index, came in below expectations.
December gold futures rose 0.4% Thursday to settle at $4,204.60 an ounce on Comex, though the front-month contract fell 2.7% in the first four days of the week. Bullion dropped 6.6% last month after rising 9.1% in August and gaining 1.7% in July. It is down 3.1% so far this year after rallying 64% in 2025. $4213.60 and the DG spot price is $4184.50.
Prices also got a boost as U.S. bond yields softened after Fed Vice Chair Philip Jefferson said more time may be needed to weigh additional rate hikes.
The core PCE, which excludes volatile food and energy prices, increased 0.2% month-on-month and 3% year-on-year, compared with forecasts for 0.3% and 3.3%. Including food and energy, headline PCE rose a seasonally adjusted 0.3% for the month and 3.4% for the year, compared with forecasts for 0.3% and 3.7%.
Meanwhile, the private payrolls report from ADP for September, which came out on Wednesday, showed that jobs rose by a better-than-expected 90,000 last month. The forecast was for 68,000.
Together, the reports lessened the chances of an immediate rate hike, though oil prices remained inflated because of the war in Iran, one of the drivers of inflation.
The Fed last month raised interest rates for the first time in three years, increasing the benchmark rate to 3.75% to 4.00%, in large part because of inflation linked to high energy prices. The central bank indicated that another hike might be coming this year. Higher rates are considered bearish for precious metals.
Over 81% of the investors tracked by the CME FedWatch Tool are now betting that the Fed will keep interest rates unchanged in October, a switch from 31% a week ago. The remaining investors tracked by the tool anticipate a 25 basis point rate hike.
Before last month’s rate hike, the Fed had kept interest rates unchanged this year after three previous rate cuts. The next Fed policy meeting is Oct. 28, six days before the U.S. midterm elections. The higher prices of goods are being seen as a pivotal issue in the election.
December silver futures rallied 1% Thursday to settle at $61.18 an ounce on Comex, though the front-month contract fell 5.6% in the first four days of the week. The most-active contract touched a record above $115 in January. Silver tumbled 9.6% in September after climbing 16% in August and sliding 3.6% in July. It is down 13% so far this year after rising 141% in 2025. The December contract is currently up $0.800 (+1.31%) an ounce to $61.975 and the DG spot price is $61.43.
Spot palladium slid 1.9% Thursday to $1,188.00 an ounce and is down 6.8% so far this week. Palladium lost 11% last month after rallying 5.7% in August and adding 5.8% in July. It is down 26% in 2026 after rising 74% last year. Currently, the DG spot price is up $16.80 an ounce to $1188.50.
Spot platinum gained 0.8% Thursday to $1,719.10 an ounce, but has retreated 3.4% so far this week. Platinum fell 4.6% last month after increasing 7.5% in August and gaining 6.6% in July. Platinum is down 15% so far this year after increasing 122% in 2025. The DG spot price is currently up $36.00 an ounce to $1735.00.
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