Market Wrap: 
Blowout NFP Revives Fed Rate-Hike Bets, Gold Reverses Sharply 
The US Non-Farm Payrolls delivered a major upside surprise in August, with the economy adding 162,000 jobs — almost three times the 55,000 expected. The strength was reinforced by an upward revision to July, with the previous 23,000 job decline revised to a 21,000 increased. 
Macro Backdrop The report triggered a sharp reversal in the market narrative established only a day earlier. Fed Governor Christopher Waller’s comments had encouraged expectations that rates could remain unchanged in September, supporting gold. Today’s much stronger employment figures challenged that positioning, as traders increased bets that the Federal Reserve could raise rates at its September meeting.
XAUUSD came under immediate selling pressure as the stronger labor-market data reversed much of the previous session’s rally. Gold fell by around 2.2% at its intraday low, briefly touching $4,373, as it forced traders to reassess the outlook for US monetary policy. The move effectively erased the bullish momentum generated by Waller’s remarks, underlining just how quickly Fed expectations can shift when incoming data challenge the prevailing market view. 
The policy debate is far from settled. Attention now turns to next week’s US inflation figures — precisely the data Waller highlighted as crucial to the September decision.
The market has swung from dovish to hawkish positioning in less than 24 hours. With inflation next on the calendar, next week could prove every bit as volatile as the final two sessions of this one.Trade with Headway!
