Gold Surges Over 7% as Weak Jobs Report Triggers Dovish Fed Bets

A shockingly weak U.S. nonfarm payrolls report for July sparked a broad-based rally in precious metals, with spot gold surging over 7% for its best week since January.

The report showed job losses instead of gains, dramatically slashing market expectations for the Federal Reserve to resume interest rate hikes in the near term.

According to data released by the U.S. Bureau of Labor Statistics (BLS), nonfarm payrolls unexpectedly fell by 23,000 in July, a massive miss compared to the 80,000 increase economists had forecast.

This data not only ended the optimistic narrative of steady labor market expansion but also instantly reversed financial market bets on Fed policy.