Gold Surges 7-Week High as Weaker Jobs Data Dims Rate Hike Prospects

Gold prices surged to their highest in seven weeks on Friday after an unexpected drop in US nonfarm payrolls for July dashed rate-hike hopes. The weaker-than-expected jobs data reduced the likelihood of a US interest rate increase, leading to a stronger gold market.

Spot gold jumped 2.4% to $4,341.69 per ounce by 10:57 am EDT (14:57 GMT), with prices gaining over 7% so far this week. This marks the largest weekly rise since January 19. US gold futures also climbed 2.4% to $4,402.20.

According to David Meger, director of metals trading at High Ridge Futures, the weaker dollar and reduced likelihood of a rate hike have contributed to stronger gold prices. The rate futures market has now priced in just a 43.9% chance of Fed tightening in September, down from 57% before the jobs report.