Bad US Jobs Data Boosts Gold

Key Takeaways

• June US nonfarm payrolls came in at just 57,000, roughly half the 110K forecast, cooling expectations for a September Fed rate hike.
• CME FedWatch odds of a hike by September fell to around 50% from 66% after the report, pressuring the US dollar and supporting gold.
• Central banks kept buying through the dip, adding a net 41 tonnes of gold in May 2026, per the World Gold Council.

June Nonfarm payrolls were expected to show a 110K increase, however the result was a mere 57,000. This result, while not ruling out a rate hike in September, has significantly lowered the odds. There is now only around a 50% chance of a hike by September, down from 66% before the report, according to CME FedWatch.

Traders may be on the lookout for more potential bleeding, but it seems central banks have taken advantage of the recent dip. The World Gold Council has noted that even in May, central banks bought 41 tonnes of gold.

The recent jobs data has caused spot gold to gap up. This is a strong follow up to its maintenance above the US$3,991 level.

Where is gold trading after the jobs data?

It looks like continued jobs data may be the major deciding factor in if gold can hang on to support levels in this area. A further break could lead to a fall to the next major support of roughly US$3,437. So far, it does not look like buyers are letting that happen.

Gold has had a tremendous run in the last several years due to no real solutions for rampant inflation and record government debt. When central banks themselves are depending on it as an insurance policy and heavily buying dips, it is difficult to disregard.

This article is general information only and does not constitute financial advice. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial adviser before making investment decisions.