US Dollar Surges as Blowout Jobs Report Crushes Gold Prices

The US dollar strengthened sharply on Friday after the latest jobs report came in far stronger than economists had anticipated, adding fresh uncertainty to expectations around the Federal Reserve’s next policy move.

Non-farm payrolls rose by 162,000 last month, more than triple the forecasted increase and a sharp reversal from the previous month’s decline. The unemployment rate held steady at 4.1%, matching expectations and signaling continued stability in the labor market.

Wage Growth Stays in Line With Forecasts

Average hourly earnings rose 0.3% for the month, matching analyst expectations and picking up pace from the prior month’s more modest gain. Steady wage growth alongside a stronger-than-expected employment number gave the dollar a notable boost, as traders recalibrated their expectations for future interest rate moves.

Gold Prices Tumble on Strong Data

The surprisingly strong jobs data triggered a sharp selloff in gold, with prices dropping nearly $100 as investors moved away from safe-haven assets in favor of the strengthening dollar. Stronger labor market data typically reduces pressure on the Federal Reserve to ease monetary policy, making non-yielding assets like gold less attractive to investors in the short term.