The U.S. labor market unexpectedly contracted in July: nonfarm payrolls fell by 23,000, against consensus expectations of an 80,000 gain, according to [investingLive](investinglive.com). Large losses in government employment drove the negative headline, the outlet noted.
The unemployment rate, however, edged down to 4.1%, below the 4.2% economists had penciled in. Wage growth kept cooling: average hourly earnings rose just 0.1% month-on-month (consensus +0.3%) and 3.2% year-on-year (consensus +3.5%), with the full data series available on [TradingEconomics](tradingeconomics.com).
The report lands ahead of the Federal Reserve's September meeting. Before the release, Fed funds futures were pricing in a 57% chance of a rate hike in September, per investingLive; a weaker jobs market and softer wage growth reduce the case for further tightening. Gold, a direct beneficiary of fading rate-hike bets, rose to a seven-week high near $4,300 an ounce as the labor data trimmed expectations of a September increase, [Anadolu Agency](aa.com.tr) reported.
