Gold Jumps on Surprise Jobs Loss and Rate Hike Doubts

Gold prices surged to their highest level in seven weeks after the release of July's US jobs numbers, which showed an unexpected loss of 23,000 jobs. The figure fell short of economists' predictions of a gain of 80,000, causing investors to reassess the likelihood of interest rate hikes by the Federal Reserve.

As a result, spot gold rose 2.3% to $4,336.02 per ounce and futures climbed to $4,399.70. This marks the largest weekly gain in gold since January, with prices increasing more than 7% so far this week.

The shift in investor sentiment has led to a decrease in the odds of a September rate hike, from 57% to 43.9%. Lower interest rates make gold more attractive relative to other assets that generate interest, as bullion does not pay dividends or interest.