Gold Soars as Weak Jobs Data Boosts Bullion Bets

Gold prices surged on Friday to their highest level in seven weeks, reaching $4,336.02 per ounce. This increase comes after the release of weak US jobs data for July, which showed a decline of 23,000 nonfarm payrolls compared to an estimated 80,000. As a result, rate hike bets have been dented, with the probability of Fed tightening in September now at 43.9%, down from 57% before the data release.

David Meger, director of metals trading at High Ridge Futures, attributed the weaker-than-expected jobs data to a reduced likelihood of US interest rate increases. This, combined with declining energy prices and a potentially weaker dollar, is expected to support gold prices. UBS has predicted that gold will reach $5,000 per ounce by the first half of 2027.

Other metals also showed gains on Friday, with spot silver increasing by 3% to $63.29 per ounce, platinum rising 1.1% to $1,747.60, and palladium gaining 0.8% to $1,381.61.