Gold Surges After NFP Miss

Gold Daily Chart

Gold traded higher for an 8th consecutive day on Friday and was boosted to its highest levels since February 20th after the release of the U.S. Employment Report.

The Bureau of Labor Statistics (BLS) reported on Friday that the U.S. created 75,000 new jobs in May, widely missing analyst expectations of 185,000. The unemployment rate remained unchanged at 3.6% as expected.

Average hourly earnings rose 6 cents to $27.83 an hour, reducing annual hourly wage gains from 3.2% to 3.1%.

The lackluster data increases the probability that the Federal Reserve will ease interest rates. According to the CME FedWatch tool there is now a 30% chance that a rate cut will take place on June 19th.

Lower interest rates make non-interest yielding assets such as gold more appealing.