Gold Soars on Weaker US Jobs Data and Reduced Rate Hike Bets
Gold prices surged to a seven-week high on Friday after US nonfarm payrolls for July dropped by 23,000 jobs, dashing rate-hike hopes and setting bullion on course for its best week in seven months.
The spot gold price jumped 2.3% to $4,336.02 per ounce by 18:42 GMT, having risen more than 3% to its highest since June 17.
US labour department's Bureau of Labour Statistics reported the unexpected drop in jobs, which was lower than the forecasted increase of 80,000 jobs.
David Meger, director of metals trading at High Ridge Futures, said, 'The weaker-than-expected jobs data presents a scenario where the Fed is going to be less likely to raise interest rates at its next meeting.'
The rate futures market has now priced in a 43.9% chance of Fed tightening in September, compared with 57% before the jobs report.