(Kitco News) - After a slow summer, the U.S. labor market appears to be gaining significant momentum, which, as expected, is putting renewed pressure on gold, with investors once again focusing on support at $4,000 an ounce.
U.S. nonfarm payrolls rose by 165,000 last month, according to the Bureau of Labor Statistics. The monthly figure significantly beat consensus forecasts, as economists had expected job gains of around 60,000.
At the same time, the unemployment rate dropped to 4.1%. Economists had expected the rate to remain unchanged at 4.2%.
Analysts had warned investors that the gold market could be sensitive to stronger-than-expected employment gains. Spot gold last traded at $4,046 an ounce, down 1% on the day.