Gold Prices Soar on Weaker US Jobs Data

Gold prices surged to a two-month high on Tuesday after weaker-than-expected US jobs data reduced expectations of another rate hike from the Federal Reserve. This development has put gold within striking distance of the closely watched $4,500 level.

The latest rally began after July payrolls unexpectedly declined, reducing confidence that the Fed will raise rates at its September meeting. Rate markets currently remain divided between another 25-basis-point increase and holding rates steady.

Lower interest-rate expectations typically reduce the opportunity cost of owning non-yielding gold. However, investor positioning and persistent central-bank demand have also contributed to the advance in gold prices.