Gold Surges Nearly $300 as Labor Market Reports Disappoint

Gold prices surged by nearly $300 this past week, driven by disappointing labor market reports. Wall Street and Main Street analysts are solidly bullish on gold's prospects next week, according to the Kitco News Weekly Gold Survey.

The survey showed that 16 out of 19 analysts, or 84%, expect gold prices to rise, while only two analysts were bearish. Among retail investors, 68.9% of respondents in an online poll expected gold to rise next week, with 15.8% anticipating lower prices.

The rally in gold was fueled by weak jobs reports from the US Labor Department and ADP, which highlighted tightness in the labor market. This led markets to price out a potential rate hike from the Federal Reserve, with the CME FedWatch Tool showing a less than 50% chance of a 25-basis-point hike in September.

However, some analysts cautioned that gold prices may have run too far, too fast after an 8% rally this week. Nicky Shiels, Head of Research and Metals Strategy at MKS PAMP, expressed concerns that inflation data next week could pose a threat to gold's momentum.