Gold Soars to Seven-Week High Amid Weaker US Employment

Gold prices surged to their highest level in seven weeks after US employment unexpectedly fell short of expectations. The weaker-than-expected jobs report led economists to rethink the likelihood of a Federal Reserve interest rate hike.

The spot price of gold rose by 2.3% on Friday, reaching $4,336.02 per ounce at 18.42 GMT. This marked its highest level since June 17 and put it on track for its strongest weekly performance in about seven months.

The US Bureau of Labor Statistics reported a decline in non-farm payrolls by 23,000 jobs in July, contradicting economists' forecasts of an increase of 80,000 positions. The June figure was also revised downward to just 20,000 new jobs.

David Meger, director of metals trading at High Ridge Futures, noted that the weaker-than-expected employment data reduced the probability of a Federal Reserve rate rise in September. Lower energy prices and a weaker dollar also pointed towards stronger gold prices.