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Metals and Grains Rally as Weak Jobs Report Weakens Dollar

A lackluster June jobs report triggered a sharp retreat in the U.S. dollar, providing an immediate lift to the metals and grains sectors. As the greenback slipped more than 0.5% from its 52-week peak, investors pivoted away from aggressive rate-hike wagers, fueling a broader recovery across raw material markets.

The labor market cooled unexpectedly last month, with the economy adding just 57,000 jobs. Bank of America Global Research economists attributed the dip primarily to volatility within the leisure and hospitality sector, suggesting the broader economic trend remains more resilient than the headline figure implies.

Gold futures, highly reactive to currency fluctuations, captured much of the momentum. Prices climbed $44.40—a 1.1% gain—to reach $4112.70 per troy ounce, effectively erasing a portion of recent losses. The dollar’s slide served as the primary catalyst for this shift, as the reduced likelihood of immediate interest rate hikes lowered the opportunity cost for holding non-yielding assets.

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