Gold Surges After Weak Jobs Report Dents Rate Hike Bets

Gold prices surged over $100 after a weaker-than-expected July jobs report from the Bureau of Labor Statistics. The report showed US employers cut 23,000 jobs in July, missing economists' expectations of an 83,000 gain.

The unemployment rate fell to 4.1% from 4.2%, but this was largely due to 264,000 people leaving the labor force, a sign of a softer hiring market. The jobs report made it less clear whether the Federal Reserve will raise interest rates in September, which is good news for gold investors.

The price of gold jumped 7.2% to $4,340.70 an ounce on Comex for August delivery, while silver rose almost 10% to $63.332 an ounce. The jobs report showed a weakening labor market and a possible slowdown in the economy, which is good news for safe-haven assets like gold.