Spot gold extended rally to 2.4% while spot silver gained 3.7% as weak US nonfarm payrolls pushed Treasury prices higher and reduced Fed rate-hike expectations.
The 2yr Treasury yield fell 6bps to 4.11% and the 10yr fell 2bps to 4.46%. Interest-rate swaps price the odds of a hike at the Fed meeting later this month at about 20%, down from roughly 33% before the data.
Markets now expect fewer than two hikes by Mar 2027, each no larger than 25bps.
Nonfarm payrolls rose 57,000 last month (prior two months revised lower); Bloomberg-surveyed economists had forecast a 113,000 gain. Labor force participation dropped materially, pushing the unemployment rate down to 4.2%.
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