Gold Soars as Dollar Weakens Ahead of US Jobs Data

Gold prices surged more than 1% on Thursday as investors reacted to the weakening dollar. The US currency fell 0.20% against a basket of six major currencies, with the dollar index dropping to 99.42.

The upcoming US nonfarm payrolls data due on Friday is the main driver of market trading this week, according to Ilya Spivak, head of global macroeconomics at Tastytrade. He believes that if the data comes in below expectations and the probability of a September rate hike declines, gold could extend its gains above $4,400 an ounce.

Data from the CME FedWatch Tool showed traders pricing in a 62% probability of a rate hike at the Fed's meeting this month. Gold prices rose with the dollar weakening, with the October futures contract rising to $4,443.00 and spot gold increasing by 1.10% to $4,429.07.