05.09.2025 18:13
Non-farm employment in the U.S. fell significantly short of expectations, coming in at 22,000, while the unemployment rate rose to 4.3%. Following the weak data, gold prices reached record highs, with spot gold rising to $3,587 and gram gold reaching 4,757 Turkish lira. The Euro/TL exchange rate hit a historic level of 48.50, and U.S. stock markets also reached new peaks. Expectations in the markets strengthened that the Fed would cut interest rates in September.
Since the beginning of the week, the spot gold, which has been breaking record after record, reached a new peak following the Non-Farm Payroll data from the United States.
EMPLOYMENT DATA WELL BELOW EXPECTATIONS
According to the data released in the U.S., non-farm employment fell to its lowest level since October 2024. While expectations were for 75,000, the reported figure was only 22,000. The unemployment rate also exceeded the expected 4.2%, recorded at 4.3%. Average hourly earnings increased by 0.3% in August, rising to $36.53, while the annual increase was 3.7%. The average weekly working hours remained stable at 34.2 hours.
RECORD IN GOLD AND CURRENCY
Before the critical data, spot gold was trading at $3,552, and after the announcement, it rose to $3,587, breaking its all-time record. The gram gold also reached a historical level of 4,757 lira. The dollar/TL exchange rate was at 41.24 before the data, and then remained at 41.25. However, the Euro/TL broke a record at 48.50. Following the U.S. employment report, the EUR/USD pair rose to 1.17500.
HISTORIC RISE IN U.S. STOCK MARKETS
Following the employment data, a sharp rise was also observed in U.S. stock markets.
- Nasdaq rose to 23,778 points.
- S&P 500 broke a record at 6,553 points.
- Dow Jones increased to 45,595 points.
EXPECTATIONS FOR INTEREST RATE CUT INCREASED
After the weak employment data, the likelihood of an interest rate cut at the Fed meeting on September 17 strengthened. Markets have largely priced in a quarter-point interest rate cut.