Spot gold rises sharply and then falls nearly $20 after the release of the preliminary U.S. 2025 non-farm payrolls benchmark change, currently trading at $3,659.68 per ounce.

Spot gold rises sharply and then falls nearly $20 after the release of the preliminary U.S. 2025 non-farm payrolls benchmark change, currently trading at $3,659.68 per ounce.

Spot gold prices surged sharply on September 8, 2025, following the release of preliminary U.S. non-farm payrolls data, which indicated a significant slowdown in job growth. The data, released on Friday, showed that non-farm payrolls increased by only 22,000 in August, far below the market expectation of 75,000. This unexpected data strengthened expectations for a Federal Reserve interest rate hike, with a 100% probability of a rate cut in September, and an 8% chance of a 50 basis point cut, providing support for gold prices .

Spot gold traded around $3,588 per ounce on Monday, September 8, Beijing time, before rising to $3,659.68 per ounce on Tuesday, September 9, after the data release. The gold price approached $3,600 per ounce, marking the strongest weekly gain in nearly four months. U.S. gold futures for December delivery increased by 1.3% to $3,653.30. The rally was driven by a weak dollar, central bank buying, easing monetary policy, and an expansion of geopolitical and economic uncertainty .

However, gold prices fell nearly $20 to $3,639.68 per ounce on Wednesday, September 10, after the Federal Reserve's Federal Open Market Committee (FOMC) meeting. The FOMC stated that it would maintain its current policy stance, but the market expected a 50 basis point rate cut in September. The FOMC's decision to keep rates unchanged led to a sell-off in gold prices, as investors moved to safer assets .

The U.S. Department of Labor reported that non-farm payrolls increased by only 22,000 in August, confirming that the labor market is cooling. This data also led to a sell-off in U.S. stocks, with the Dow Jones Industrial Average falling by 0.48%, the S&P 500 index declining by 0.32%, and the Nasdaq index decreasing by 0.03% on Friday, September 6. The weak employment data increased pressure on the Federal Reserve to lower interest rates .

The gold market remains bullish, as traders are currently betting that the probability of a 25 basis point rate cut in September is 90%, while the chance of a 50 basis point cut is 10%. The weak employment data has overshadowed inflation concerns in the short term, making the outlook for gold undoubtedly bullish. Independent metal trader Tai Wong stated that gold continues to hit new highs; bulls are focused on the trend of clearly weakening employment translating into multiple rate cuts .

References:
https://news.futunn.com/en/post/61778612/september-8-financial-breakfast-weak-non-farm-payrolls-reinforce-expectations