Fed's Rate Pause Sends Gold Prices Soaring to Seven-Week High

Gold prices surged to a seven-week high on Friday after data showed the US economy shed 23,000 jobs in July, below expectations. The precious metal traded at $4,347.09 per troy ounce, up 2.53% from the previous session.

The decline in job growth and corresponding drop in Treasury yields was seen as a boost to gold prices, which typically benefit when interest rates are low or expected to decrease. The Federal Reserve's decision not to raise interest rates in July also contributed to the rally.

The 10-year TIPS yield dropped five basis points to 4.63% on Friday, extending a decline that started midweek as oil eased and hike odds faded. This development was seen as bullish for gold, as real yields pushed toward 2.5%, a threshold that has historically marked where gold's opportunity cost becomes prohibitive enough to drive sustained Western ETF liquidation.