Gold Soars on Weak US Jobs Data, Hits Strongest Weekly Gain Since March 2020
The gold price surged after weak US jobs data on Friday, with spot gold jumping more than $100 per ounce to $4368 immediately after the data was released. This marked its strongest weekly gain since March 2020, when investors sought safe-haven assets during the Covid-19 crisis.
The unexpected decline in non-farm payrolls by 23,000 in July led to a sharp drop in the US dollar and Treasury yields. The Dollar Index fell around 0.5% to a two-month low, while the benchmark 10-year Treasury yield slipped to around 4.61%, also its lowest level in two months.
The Chinese central bank reported its largest monthly increase in gold reserves in nearly three years, adding 20 tonnes in July. This brings its year-to-date increase to just over 60 tonnes and total gold holdings to 2,366 tonnes.