Commodities
Gold Soars on Weak US Jobs Data: Rate Hike Bets Dented
Gold prices surged on Friday to their highest level in seven weeks, reaching $4,348.87 per ounce as weak US jobs data dented rate hike bets.
The unexpected drop in non-farm payrolls for July from the Labor Department's Bureau of Labor Statistics had economists polled by Reuters revising their forecast downward from 80,000 new jobs to just 23,000.
David Meger, director of metals trading at High Ridge Futures, said that the weaker-than-expected jobs data presents a scenario where the Fed is less likely to raise interest rates at its next meeting.
The rate futures market has now priced in only a 43.9% chance of Fed tightening in September, down from 57% before the jobs report.