Gold Soars on Weak NFP Data, Breaches Key Resistance
The gold futures contract (GCZ6) surged to $4,399 per ounce on August 7, 2026, after a weak US non-farm payrolls report. The data release by the US Bureau of Labour Statistics showed a contraction in jobs, with a sharp downside surprise compared to expectations.
The FedWatch Tool indicated that the implied market probability of a 25-basis-point interest rate increase fell from 54% to approximately 44%. This reduced the likelihood of a hike, making gold more attractive as a safe-haven asset. The US Dollar Index (DXY) depreciated by 0.36% to 99.60 points, further boosting gold's appeal.
From a technical perspective, gold futures maintain a long-term bullish trajectory. A breach of the downward trendline on daily timeframes suggests a potential continuation of the recovery. The next significant resistance level is at $4,870, which could signal further extension into higher valuation territory if broken.