Gold Surges as Weak Jobs Report Dampens Rate Hike Bets

A weak U.S. jobs report released on Friday led to a decline in expectations of an imminent Federal Reserve interest rate hike, which pushed gold prices higher.

The nonfarm payrolls rose by just 29k last month, significantly lower than the estimated figure of 89k, and the unemployment rate ticked up to 4.2% in September from 4.1% in August.

This soft labor market data has made it less likely for the Fed to tighten monetary policy, which tends to strengthen non-yielding assets like gold.

Spot gold rose by 0.8% to $4,145.78/oz on Friday, while gold futures added 0.3% to $4,174.59/oz.