Gold Reaches Seven-Week High on US Payroll Surprise

Gold prices surged to a seven-week high after the US reported an unexpected drop in July payrolls. The Labor Department announced that nonfarm payrolls declined by 23,000 against expectations of an 80,000 increase.

The weaker-than-expected jobs report led to a decline in Treasury yields and the dollar index, which further supported gold's rally. Spot gold traded above $4,340 an ounce and briefly moved beyond $4,350 during the session.

The move also pushed gold futures above $4,400 per ounce, its highest level since June 5. Gold gained over 10% in the past month as traders reduced expectations for another Federal Reserve rate increase in September.