Gold near $4,160 and bitcoin above $86,000 hold gains after soft US jobs data
A soft US jobs report lowered bets on a Fed rate hike, and both gold and bitcoin held gains on Monday, according to FXStreet and CoinDesk.
A weaker-than-expected US jobs report on Friday gave gold and bitcoin a lift to start the week. According to FXStreet, the gold price moved to near $4,160 in early Asian trading on Monday. The report also weighed on the US dollar.
The Bureau of Labor Statistics said US employers added 29,000 jobs in September. That followed 133,000 in August, a figure revised down from 162,000. Outlets gave different forecasts: CoinDesk, citing QCP Capital, said analysts expected 84,000, while FXStreet put the forecast at 90,000.
CoinDesk, citing QCP Capital, also reported that unemployment rose to 4.2%. Pay increases cooled to 3% compared with twelve months before, which is the weakest rate seen since May 2021.
Traders reacted by cutting their bets on a Federal Reserve rate hike this month. Using data from the CME FedWatch Tool, FXStreet reported that traders put the odds of a rate increase at roughly 22.1%. That compares with around 70% earlier in the week. Higher rates usually weigh on gold because it pays no interest.
Early Monday, Bitcoin gained 1% and moved slightly above $86,000, according to CoinDesk. It is still below the $87,000 level it briefly passed on Friday, according to Bitcoin Magazine. Investing.com said bitcoin traded in a fairly narrow range over the weekend, near $85,386 on Sunday.
Key facts
- US employers added 29,000 jobs in September, according to the Bureau of Labor Statistics.
- Gold traded near $4,160 early Monday, according to FXStreet.
- Early Monday, Bitcoin gained 1% and moved slightly above $86,000, according to CoinDesk.
- This month, the chance of the Fed lifting rates was about 22.1% on the CME FedWatch Tool, a drop from roughly 70% at the start of the week.
- QCP Capital, as passed along by CoinDesk, said the jobless rate went up to 4.2% while pay growth eased to 3%.
- QCP Capital said bitcoin needs to clear $87,200, CoinDesk reported.
Why it matters
Jobs data can change what people expect from interest rates, and that can move many kinds of investments at once. Lower odds of a rate hike can help assets like gold, which pays no interest. For everyday investors, it is a reminder that prices react quickly to news and can move up and down just as fast.
What happens next
CoinDesk said the minutes from the latest Fed meeting (FOMC) are due on Wednesday.
Sources
- Live updates: Bitcoin above $86,000 as traders price out an October Fed hike – CoinDesk
- Gold holds gains above $4,150 as traders trim bets on Fed rate hikes – FXStreet
- Bitcoin edges above $85,000 as traders weigh U.S. leveraged-crypto move – Investing.com Crypto
- Bitcoin Price Prediction: Six of Eight Octobers Up – CryptoTicker
- Bitcoin Price Surges Above $87,000 on Softer-Than-Expected Jobs Data – Bitcoin Magazine
- Traders now see little chance of a Fed rate hike in October after weak jobs report – CNBC Finance
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