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Gold Up as Nonfarm Payrolls Unexpected 263k Positions – Gold Silver Reports

Gold Silver Reports (GSR) – Gold Up Nonfarm payroll unexpected 263k positions. March payrolls were revised slightly downward to 189k compared to 196k originally reported.

The unemployment rate has dropped faster than expected to the range of 3.6%.

The labor market has produced mixed data recently, with the ISM Manufacturing PMI showing a sharp decline in employment recently. However, overall the market is going strong with the private sector reporting an increase of 275,000 jobs recently as well as Friday’s reported increase of 263,000 nonfarm payroll jobs.

The Federal Reserve had pointed to 3.6% unemployment by the end of the year, and that figure now appears to have been reached already in Q2.

Despite the ongoing strength of the labor market, wage growth is slower than expected at 0.2% monthly or 3.2% annually, 0.1% lower than predictions in both cases.

Wages rose for private nonfarm payroll employees rose by $0.06 to $27.77, and average hourly earnings for private sector production and non-supervisory employees increased by $0.07 to $23.31.

Read More : Central Banks Buy Gold 145.5 Tons in First Quarter: World Gold Council

While below expectations, as of April hourly earnings have now increased above 3% for 9 months in a row.

The recent report has led some to call for fiscal policy adjustments in light of the strong labor market.

Report Data – Professional and business services added 76k jobs, construction companies rose by 33k healthcare providers hired 27k people, and employment in social assistance rose by 26k.

Government jobs rose 27k Manufacturing added 4k, and retail dropped by 12k, the third month of consecutive decline following ongoing headwinds in the industry.

Read More : Gold Prices Slip ₹520; Silver Rate Down ₹425

Market Reaction – Surprisingly, gold has shot upward following the news which has also seen a strengthened US dollar. Typically an unexpected increase in jobs is bearish for gold, as is upward momentum in the greenback.

The volatility may be a reaction to the mixed news that wage growth is slow even amid a booming jobs-market. Spot gold last traded at $1,276.38/oz, up 0.53% on the day.

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Neal Bhai has been involved in the Bullion and Metals markets since 1998 – he has experience in many areas of the market from researching to trading and has worked in Delhi, India. Mobile No. - 9899900589 and 9582247600