Gold Prices Soar Over 7% on Weaker Jobs Report

Global gold prices rose significantly last week, increasing by over 7% to reach $4,336.02 per ounce on August 7th. This marked the strongest gain since January, with spot gold rising 2.3% that day.

The jump in global gold prices was largely driven by a weaker-than-expected US jobs report, which reduced expectations of a Federal Reserve interest rate hike in September. The report showed non-farm jobs fell by 23,000 in July, contrary to economists' forecasts of an 80,000 increase.

According to David Meger, Director of Metals Trading at High Ridge Futures, the weaker-than-expected jobs report makes it less likely that the Fed will raise interest rates at its next meeting. However, Thierry Wizman, global foreign exchange and interest rate strategist at Macquarie Group, suggests that the market may postpone expectations of a Fed rate hike to October or December.

Dr. Bui Ngoc Son, an economic expert, believes that the Fed's interest rate policy continues to be a major variable influencing gold prices. He predicts that gold will react strongly to interest rate expectations in the short term and remain supported by geopolitical risks, the demand for safe-haven assets, and the trend of diversification away from the US dollar.