Gold Soars to Seven-Week High on Weak US Jobs Data

Gold prices surged to their highest in seven weeks on Friday, reaching $4,336.02 per ounce, after weak US jobs data for July dented rate-hike hopes and set gold on course for its best week in seven months.

The unexpected drop in nonfarm payrolls by 23,000 jobs last month dashed rate-hike expectations, with economists polled by Reuters forecasting an increase of 80,000 jobs. As a result, the rate futures market has now priced in a 43.9% chance of Fed tightening in September, down from 57% before the jobs report.

David Meger, director of metals trading at High Ridge Futures, noted that the weaker-than-expected jobs data presents a scenario where the Fed is less likely to raise interest rates at its next meeting, leading to a weaker dollar and stronger gold prices. Lower interest rates make gold more attractive relative to yield-bearing assets as bullion does not generate interest.

UBS expects gold prices to climb to $5,000 per ounce in the first half of 2027, according to a note on Friday. Meanwhile, US President Donald Trump expressed confidence that the war with Iran would be over soon.