Gold Soars as US Payrolls Data Triggers Rate Hike Expectations

The recent surge in gold prices to $4,401.40 per troy ounce on Friday, representing a 2.37% gain on the day and a 7.39% advance for the week, was largely driven by the US government's July payrolls data.

The report showed a loss of 23,000 nonfarm payrolls in July, a stark reversal from the 80,000 to 85,000 job additions economists had predicted, and revised May and June figures down by a combined 103,000 positions.

As a result, the probability of a rate hike fell from roughly 57% to around 44%, while the market now assigns nearly 60% odds to a pause, which would reduce real interest rates and make gold more attractive to investors.