NFP in gold trading
NFP is the US non-farm payrolls report, released at 8:30 a.m. Eastern usually on the first Friday of the month; it is one of the most volatile events for gold.
Also called Non-farm payrolls, US jobs report, Employment Situation
Non-farm payrolls is the headline figure of the US Employment Situation report, published by the Bureau of Labor Statistics at 8:30 a.m. Eastern, normally on the first Friday of the month. It gives the change in jobs outside farming, the unemployment rate and average hourly earnings. Markets compare each with consensus and with revisions to the previous two months.
How it applies to gold trading
NFP affects gold through the Fed’s employment mandate. A strong report argues for tighter policy, lifts real yields and the dollar and usually knocks gold lower; a weak one does the opposite. Because three numbers land at once, the reaction can be contradictory: a soft headline with hot wage growth can send gold up, then down, then sideways in the first ten minutes. Spreads on XAUUSD widen sharply and stops fill with slippage.
The hour after the release is often the most traded of the month, and the move frequently sets the tone for the New York session. Some traders trade only the retracement after the first spike; others stay flat until the London afternoon fix has passed.
A common mistake
Placing a tight stop on a gold position minutes before 8:30 and expecting it to limit the loss to the planned amount. Slippage on NFP stops is normal, and the realized loss can be a multiple of the plan.
See also: News spike, CPI, Slippage, New York session.
Frequently asked questions
What time is NFP released?
At 8:30 a.m. Eastern on the scheduled Friday, usually the first Friday of the month. The BLS schedule shows exceptions around holidays.
Does gold go up or down on a strong NFP?
Usually down, because strong jobs data raises expected rates. The reaction also depends on wages and revisions, and on what the market was positioned for.