Gold Prices Soar 7% as US Jobs Report Misses Expectations

International gold prices surged more than 7% last week, with spot prices firmly holding above $4,300 per ounce. The rally was triggered by a shocking US July nonfarm payrolls report, which showed an unexpected decline of 23,000 jobs, dramatically missing market expectations.

This caused market expectations for further Federal Reserve rate hikes to plummet, sending the US dollar lower. Additionally, easing Middle East tensions weighed on energy prices and inflation, reducing pressure on central banks to tighten policy.

Hedge fund bullish bets climbed to a six-month high, and the People's Bank of China increased its gold reserves for the 21st consecutive month. However, gold prices remain well below their earlier highs this year.