US Nonfarm Payrolls Unexpectedly Fall, Unemployment Hits 8-Year Low, Boosting Precious Metals

[SMM Precious Metal Express] Fed officials Hammack and Goolsbee delivered hawkish remarks simultaneously. Hammack said the Fed should act on rate hikes, as waiting would only bring pain, and does not believe financial conditions are tight. Goolsbee noted that inflation has persisted longer than expected, and the focus must remain on whether it is transitory. The dual hawkish signals have further raised rate hike expectations, weighing on precious metals.

[SMM Precious Metal Express] Fed Chair Warsh stated at the Jackson Hole symposium that he must be confident underlying inflation is moving toward target, or more work remains. He noted the US economy is strong and the labor market is at full employment, but inflation remains too high. Former Fed Vice Chair Blinder interpreted the remarks as a form of forward guidance, possibly signaling a preference for rate hikes. Following the speech, market expectations for a September rate hike jumped from 35% to approximately 60%, with the dollar and Treasury yields strengthening sharply and gold prices plunging.