Gold Prices Soar on US Jobs Report, but Market Remains Divided
Gold surged by 7.39% last week to $4,401.40 per ounce, its strongest weekly gain since January, but beneath this impressive rally lies a fragmented market.
The catalyst for gold's breakout was the disappointing US jobs report, which showed a loss of 23,000 nonfarm payrolls in July against expectations of solid growth. This led to a decrease in the probability of a September rate hike and triggered a swift response from futures markets.
Gold broke through the $4,300 resistance level it had been stuck at since June 17, clearing a technical hurdle that had capped its upside momentum for weeks. The Relative Strength Index now sits at 66.5, elevated but still shy of the overbought mark of 70.
The upcoming September Fed meeting on the 15-16th is expected to shape the market's trajectory, with two inflation reports scheduled before then that could further influence expectations for a rate hike or not.