Gold Prices Soar on Surprise US Employment Data

Gold prices have surged to a seven-week high, reaching $151,985 after a surprise decline in U.S. nonfarm payrolls for July reduced expectations of a Federal Reserve rate hike.

The unexpected drop in wages and labor-force participation has reinforced the expectation of a less hawkish policy stance from the Fed.

This, combined with lower energy prices that reduce inflationary pressures, has contributed to the recent rally in gold prices.

Chinese investors have also increased their gold-backed asset positions amid equity-market volatility and firm physical demand, which has lifted China's central bank holdings of gold to 76.08 million fine troy ounces over a 21-month buying streak.