Gold Rises, Dollar Slumps Following Nonfarm Payroll Miss
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The PowerShares DB US Dollar Index Bullish (NYSE: UUP) is lower while SPDR Gold Shares (NYSE: GLD) is up Friday morning following news that the U.S. added fewer jobs in August than expected.
The U.S. Bureau of Labor Statistics said that total nonfarm payroll increased by 169,000 in August, while expectations called for a rise to 180,000 positions. Amid the light reading, U.S. unemployment slipped to 7.3 percent for the month, while the Street was looking for an unemployment rate at 7.4 percent.
With the economic data coming in below views, the knee-jerk reaction from the Street is that the Fed might prolong tapering its easing measures, which would further devalue the dollar and make gold contracts cheaper to outside investors.
The U.S. Bureau of Labor Statistics said that total nonfarm payroll increased by 169,000 in August, while expectations called for a rise to 180,000 positions. Amid the light reading, U.S. unemployment slipped to 7.3 percent for the month, while the Street was looking for an unemployment rate at 7.4 percent.
With the economic data coming in below views, the knee-jerk reaction from the Street is that the Fed might prolong tapering its easing measures, which would further devalue the dollar and make gold contracts cheaper to outside investors.
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