Gold Prices Spike 7% Amid Weakening US Jobs Data and Easing Middle East Tensions

Last week, gold prices surged to their highest level since mid-June, briefly surpassing $4,400 per ounce. According to the New York Mercantile Exchange, gold futures for December delivery closed at $4,399.70 per ounce on Friday, marking a 7% increase from the previous week.

The sudden rise in gold prices is attributed to two key factors: weak U.S. employment data and easing tensions in the Middle East. Last week's nonfarm payrolls report showed a decrease of 23,000 jobs in July, far below the expected increase of 80,000. This unexpected downturn has weighed on investor sentiment.

Additionally, expectations for an easing of the Middle East situation have risen, alleviating upward pressure on global energy prices and cooling inflation expectations. Analysts at IG Group note that this shift has reduced the need for major central banks to further tighten monetary policy, pushing gold prices higher in the short term.