{"id":52739,"date":"2025-09-05T13:38:40","date_gmt":"2025-09-05T17:38:40","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/"},"modified":"2025-09-05T13:38:40","modified_gmt":"2025-09-05T17:38:40","slug":"gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/","title":{"rendered":"Gold Soars to Record High Amid Weak US Jobs Data, BoC Rate Cut Expectations Mount"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Key_Takeaways\" >Key Takeaways<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Gold_Hits_Record_High_as_US_Jobs_Data_Weakens\" >Gold Hits Record High as US Jobs Data Weakens<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Bank_of_Canada_Rate_Cut_Expectations_Intensify\" >Bank of Canada Rate Cut Expectations Intensify<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#US_Labor_Market_Struggles_and_Manufacturing_Job_Losses\" >US Labor Market Struggles and Manufacturing Job Losses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Trump_Considers_Blocking_Tech_Outsourcing_to_India\" >Trump Considers Blocking Tech Outsourcing to India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Rising_COVID-19_Infections_Across_the_US\" >Rising COVID-19 Infections Across the US<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"#\" data-href=\"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/gold-soars-to-record-high-amid-weak-us-jobs-data-boc-rate-cut-expectations-mount\/52739\/#Other_Market_Movements\" >Other Market Movements<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul>\n<li><strong><a href=\"https:\/\/stockmarketwatch.com\/metal\/gold-price.aspx\" data-internallinksmanager029f6b8e52c=\"4\" title=\"gold price today\">Gold prices<\/a> surged to a fresh record high of nearly $3,600 per ounce<\/strong>, driven by a weaker-than-expected U.S. jobs report that solidified expectations for a Federal Reserve interest rate cut later this month.<\/li>\n<li><strong>BMO Capital Markets now anticipates a Bank of Canada rate cut in September<\/strong>, a shift in outlook as the Canadian economy grapples with significant contraction and ongoing trade tensions.<\/li>\n<li>The <strong>U.S. labor market showed considerable weakness in August<\/strong>, with only <strong>22,000 jobs added<\/strong> and a year-to-date loss of <strong>78,000 manufacturing jobs<\/strong>, pushing the unemployment rate to 4.3%, its highest since 2021.<\/li>\n<li>Former President <strong>Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> is reportedly considering policies to block U.S. tech companies from outsourcing jobs to India<\/strong>, emphasizing a focus on domestic job creation.<\/li>\n<li><strong>COVID-19 infections are growing or likely growing in 30 U.S. states<\/strong>, with California experiencing a notable late-summer surge, including doubling test positivity rates.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Gold_Hits_Record_High_as_US_Jobs_Data_Weakens\"><\/span>Gold Hits Record High as US Jobs Data Weakens<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><strong>Gold<\/strong> prices soared to a fresh all-time high on Friday, with spot gold rising to approximately <strong>$3,581.07 per ounce<\/strong> and touching a record of <strong>$3,597.80<\/strong>, while December gold futures reached <strong>$3,637.42 per ounce<\/strong>. This rally was primarily fueled by a softer-than-expected U.S. jobs report for August, which significantly increased market expectations for a Federal Reserve interest rate cut in September. The U.S. economy added a languid <strong>22,000 nonfarm payrolls<\/strong> in August, falling well below economists&#39; projections of 75,000. This weak employment growth, coupled with the unemployment rate rising to <strong>4.3%<\/strong>\u2014its highest level since 2021\u2014reinforced views of a cooling labor market and a dovish shift from the Fed.<\/p>\n<p>Traders are now pricing in a nearly 100% chance that the Fed will slash rates by 25 basis points at its September 16-17 meeting, according to CME&#39;s FedWatch Tool. The dollar lost ground, and Treasury yields retreated, further boosting the appeal of non-yielding bullion as a safe-haven asset.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bank_of_Canada_Rate_Cut_Expectations_Intensify\"><\/span>Bank of Canada Rate Cut Expectations Intensify<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Canada, <strong>BMO Capital Markets<\/strong> has revised its forecast, now expecting the <strong>Bank of Canada (BoC)<\/strong> to cut interest rates in September. This comes as the Canadian economy contracted by <strong>1.6%<\/strong> on an annualized basis in the second quarter, marking the steepest drop since the pandemic and significantly worse than the <strong>-0.7%<\/strong> average estimate. The contraction was largely attributed to a <strong>7.5%<\/strong> fall in exports to the U.S. between April and June, exacerbated by ongoing trade tensions. While some economists from BMO previously saw a &quot;high bar&quot; for a September cut due to persistent core inflation, the latest economic data appears to have shifted the consensus. Desjardins Securities also maintains its forecast for a September rate cut, citing the significant miss on Q2 GDP estimates and a lack of momentum in the third quarter.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"US_Labor_Market_Struggles_and_Manufacturing_Job_Losses\"><\/span>US Labor Market Struggles and Manufacturing Job Losses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The U.S. labor market continues to show signs of distress beyond the overall weak August jobs report. The manufacturing sector, in particular, has faced significant headwinds, losing <strong>12,000 jobs<\/strong> in August alone and a total of <strong>78,000 manufacturing jobs<\/strong> so far this year. This decline comes despite promises of a factory resurgence, indicating that current policies have not yet delivered the desired boost to domestic manufacturing. Other sectors also experienced job losses, with professional and business services shedding <strong>17,000 jobs<\/strong> and the federal government losing <strong>16,000 jobs<\/strong> in August.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Trump_Considers_Blocking_Tech_Outsourcing_to_India\"><\/span>Trump Considers Blocking Tech Outsourcing to India<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Former President Donald <a href=\"https:\/\/thestockmarketwatch.com\/live\/trump-stock-market\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Trump\">Trump<\/a> is reportedly exploring measures to prevent U.S. tech giants from outsourcing jobs to India. During an AI Summit in Washington in July, Trump delivered a directive to Silicon Valley leaders, stating that &quot;the days of\u2026 hiring workers in India are over.&quot; He criticized the &quot;globalist mindset&quot; of companies like <strong>Google<\/strong> (<a href=\"\/stock\/GOOGL\">GOOGL<\/a>), <strong>Microsoft<\/strong> (<a href=\"\/stock\/MSFT\">MSFT<\/a>), and <strong>Apple<\/strong> (<a href=\"\/stock\/AAPL\">AAPL<\/a>), urging them to prioritize American job creation. This stance is part of a broader &quot;America First&quot; policy aimed at bringing jobs and innovation back to U.S. soil.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Rising_COVID-19_Infections_Across_the_US\"><\/span>Rising COVID-19 Infections Across the US<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Centers for Disease Control and Prevention (CDC) reports that <strong>COVID-19 infections are growing or likely growing in 30 U.S. states<\/strong>. California is experiencing a notable late-summer surge, with test positivity rates doubling statewide to <strong>12.07%<\/strong> for the week ending August 23, compared to late July. Wastewater data also indicates &quot;high&quot; levels of coronavirus in California, and emergency department visits for COVID-like illnesses are increasing in several counties. This rise is attributed to increased social gatherings over the Labor Day weekend and the return of children to school.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Other_Market_Movements\"><\/span>Other Market Movements<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The <strong>Federal Open Market Committee (FOMC)<\/strong> has announced its tentative meeting schedule for 2027, with the first meeting slated for January 26-27. In the energy sector, the <strong>US Baker Hughes Rig Count<\/strong> increased by one to <strong>537<\/strong> for the week ending September 5, with rotary oil rigs at <strong>414<\/strong> (up from 412) and rotary gas rigs at <strong>118<\/strong> (down from 119). Additionally, <strong>15 counterparties took $20.997 billion<\/strong> at the Fed&#39;s reverse repo operation, an increase from the previous $20.128 billion with 17 bids.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Gold prices surged to a fresh record high of nearly $3,600 per ounce, driven by a weaker-than-expected U.S. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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