Gold drops as US payrolls beat, unemployment slips

COMEX gold futures fell after U.S. payrolls beat forecasts and the unemployment rate slipped, later dropping as much as $30.70 an ounce from $4,072.00 before the release at 12:57 UTC to $4,041.30 at 14:29 UTC after October non-farm employment rose 165,000 against a 65,000 consensus and unemployment fell to 4.1% from an expected 4.2%.

For traders, the surprise mattered because Reuters said the stronger jobs report gave the Federal Reserve more scope to focus on inflation, while Kitco said the payrolls beat lifted the dollar and pushed the two-year Treasury yield up about 6 basis points to 4.53%, a mix that pressured gold.

Labor market strength shifts the policy read-through

The Bureau of Labor Statistics said total nonfarm payroll employment rose by 165,000 in October and the unemployment rate was 4.1%, with the jobless rate staying in a 4.1% to 4.3% range since March. Reuters said the report reinforced labor-market resilience, and AP said strong jobs data could make Fed policymakers more confident in the health of the labor market.

Kitco said the payrolls surge strengthened the case for a December Fed rate increase. Reuters separately said the data gave the Fed more room to focus on inflation rather than labor-market weakness.

There had already been a firm labor-market signal ahead of payrolls. U.S. weekly unemployment claims came in at 189,000 on Thursday, Nov. 5, 2026, below a 197,000 forecast, according to FRED data in the economic calendar.

Wages and revisions add to the surprise

Friday’s report was also firm on wages. Average hourly earnings rose 0.4% month on month, above a 0.3% forecast, according to FRED data in the economic calendar, and the Bureau of Labor Statistics said earnings were up 3.1% from a year earlier.

The Bureau of Labor Statistics also said the labor force participation rate was 61.9% and the employment-population ratio was 59.3% in October. It said October payroll growth was above the 12-month average monthly gain of 48,000.

Prior months were revised higher as well. The Bureau of Labor Statistics said August payrolls were revised up by 53,000 to 186,000 and September by 31,000 to 60,000, for a combined addition of 84,000 jobs. The economic calendar showed September had previously been reported at 29,000 before that revision.

Later on Nov. 6

Later in the session, gold recovered the payrolls-driven drop. COMEX futures settled near $4,075.80 an ounce, up $2.70 on the day, according to settlement data. By 19:41 UTC, futures were at $4,074.00 after reaching $4,087.20 at 18:59 UTC, while the University of Michigan’s preliminary consumer sentiment index had earlier printed at 51.0 against a 48.1 forecast.