US Jobs Data Improves: Gold Falls Sharply To US$ 1,698, US Bond Yield Gains

The US Labour Department reported that the country hired more workers than expected in September. The US unemployment rate has dropped to 3.5% from 3.7% the previous month. This is indicating a tight labour market that keeps the Federal Reserve on its aggressive monetary policy tightening policy. The macroeconomic situation largely impacts commodity prices across the globe. In line with that, gold and silver prices in the global markets eased down marginally today. A better-than-expected economy in the US is keeping the gold markets under pressure, while the US Bond yields are gaining.

In the Comex futures, the gold rate dropped to US$ 1,698.40/oz, and silver prices dropped to US$ 20.135. Comex gold futures today fell by around 1% and silver futures dropped by around 2.3%. In October, gold prices started to gain momentum as a safe haven concern, and reached around US$ 1730/oz. But today's employment data affected the same growth traction.

Nonfarm payrolls increased by 263,000 jobs in September, the US Labour Department mentioned today. August was unrevised to show an additional 315,000 jobs. It is higher than expected job growth as economists polled by Reuters had forecast 250,000 job gains in the last month. Today's employment results might push the gold markets to the bear zone again. Investors are worried about a possible recession in the US, but a growing economy and employment picture can cool down the fear.

Meanwhile, the 2-year Treasury bond yield increased to around 4.302%, and the 10-year U.S. Treasury yield increased to around 3.879%. The US Dollar index grew to 112.67 at the time of writing.

In India, the 22-carat gold rate is quoted at Rs. 47,850/10 grams, and 24-carat gold rate is quoted at Rs. 52,200/10 grams. Additionally, in the Mumbai Commodity Exchange (MCX), gold in December future is quoted at Rs. 51999/10 grams, up only by 0.05%, and silver in December futures is quoted at Rs. 60751/kg, down sharply by 0.97%.