The September jobs report, which was released in early October, was so universally dismal that it managed to convince the majority of investors the Federal Reserve would not raise interest rates in 2015.
Since it is widely believed that gold rallies when interest rates stay below the rate of inflation, it is not surprising that in the two weeks following the release of the report, gold rallied from a multi-year low of $1,113 on Sept. 30 to $1,184 on Oct. 14, a gain of 6.4 percent. But the sentiment didn't last. A number of pro-rate hike statements from Fed officials, a supposedly hawkish statement from the Fed's October meeting, and a better-than-expected October jobs report released in early November, convinced the vast majority of investors and economists that a December rate hike was firmly back in play. This sent gold right back down, hitting a multi-year low of $1,075, a decline of over 9 percent in just two weeks.