Weak NFP Jobs Report And Jobless Claims Data Pressure Dollar, Lift Gold On Rate Cut Bets

Nonfarm payrolls rose by just 57,000 jobs, well below the 114,000 forecast and a steep drop from the previous month’s 172,000 gain. The unemployment rate eased slightly to 4.2%, better than the expected 4.3%. Weekly jobless claims came in at 219,000, up from 215,000 the prior week. Average hourly earnings held steady, rising 0.3% as expected.

Weak Jobs Data Raises Rate Cut Hopes

The soft payrolls figure adds pressure on the Federal Reserve to consider rate cuts sooner. The report follows Fed Chair Kevin Warsh’s comments Wednesday that inflation risks had eased, remarks already seen as opening the door to a less restrictive policy stance.

Dollar Slips, Gold Gains On Rate Cut Expectations

The weaker jobs report weighed on the dollar as traders increased bets on earlier rate cuts, while gold rose on demand for safe haven assets. Markets now look to upcoming Fed meetings for further guidance on the pace of policy easing.Gold move almost 1.6% on upside.