Gold Miners, Crypto Slide As Fed Hike Odds Jump

Crypto-linked stocks and gold miners were among the worst performers on Friday after stronger-than-expected August jobs data strengthened the case for a Federal Reserve rate hike this month.

• VanEck Gold Miners ETF stock is trending lower. What’s pulling GDX shares down?

The U.S. economy added 162,000 jobs in August, well above the consensus estimate of 56,000. July’s reported loss of 23,000 jobs was also revised into a gain of 21,000.

The stronger labor market has now fully shifted the focus toward the next inflation reading, with price pressures still remaining above the 2% target.

CME FedWatch now puts the probability of a hike to 3.75%–4% at the Sept. 16 FOMC meeting at 60.2%, versus 39.8% for a hold, as of 9:19 a.m. ET.

“The August jobs report was much better than expected, focusing the Fed squarely on controlling inflation when they meet next in September,” said Bill Adams, chief economist at Fifth Third Commercial Bank.

Gold Miners Took The Worst Of It

The VanEck Gold Miners ETF (NYSE:GDX) fell 1.90% shortly after the open, the weakest among equity industries.

Spot gold prices fell 1.4% to $4,400 per ounce.

The reaction reflects the market’s repricing of interest-rate expectations.