Gold Soars on Weak US Jobs Data, Rate Hike Bets Dented

Gold prices surged on Friday to their highest in seven weeks after the release of weak U.S. jobs data, which dented expectations for interest rate hikes by the Federal Reserve.

The spot price of gold jumped 2.4% to $4,341.69 per ounce by 10:57 a.m. EDT (1457 GMT), with bullion poised to post its largest weekly rise since January 19, gaining over 7% so far this week.

U.S. nonfarm payrolls decreased by 23,000 jobs in July, falling short of economists' forecast of an 80,000 increase. This unexpected drop has reduced the likelihood of a rate hike at the Fed's next meeting, said David Meger, director of metals trading at High Ridge Futures.

With lower interest rates making gold more attractive relative to yield-bearing assets, prices are expected to climb further. UBS predicts that gold will reach $5,000 per ounce in the first half of 2027.