The most active gold contract for December delivery went up 1 USA dollars, or 0.09 percent, to settle at 1,137.60 dollars per ounce. Non-farm payrolls rose by only 142,000 last month, below economists’ expectations of 203,000.
The Dow Jones Industrial Average dropped as much as 259 points in early trade, but recovered somewhat to trade 62 points, or 0.4, higher at 16,335, with losses in financials including (http://www.marketwatch.com/story/ugly-jobs-report-is-punishing-financial-stocks-2015-10-02)J.P....
The newest report came just two weeks after the Fed decided that the economy’s advance was still too fragile to risk lifting interest rates from their near-zero level, even as it hinted that it might go ahead by December.
The weak September jobs report and downward revisions to the prior two months raised fresh fears about the health of the USA economy, which appears to have weakened amid a slowing global economy and recent market turbulence.
The greenback rose on Friday as dollar bulls took heart after Federal Reserve Chair Janet Yellen kept the door open to a hike in interest rates later this year, a week after the central bank delayed aa long-anticipated move.
The report, by Rebecca Williams and Adam Richardson, says it is important the Reserve Bank knows what a neutral rate would be, so it can gauge how expansionary or contractionary its current monetary policy settings are for the market.
In a speech late Thursday, Fed Chair Janet Yellen, who spoke a week after the Fed delayed a long-anticipated rate hike, said she and other Fed policymakers do not expect recent global economic and financial market developments to significantly affect the central bank’s policy.