Gold Surges Past $4,400 on Weak Jobs Report and Reduced Rate Hike Expectations

Gold prices surged past $4,400 last Friday, reaching new intraday highs as the commodity rebounded following weak U.S. payrolls and reduced expectations for a September Fed rate hike.

The disappointing July jobs report saw the U.S. add only 23,000 non-farm jobs, while markets expected a gain of about 80,000, leading to a decrease in odds of a September Fed rate hike to 44% from 57%. This has created a favorable environment for gold as lower yields decrease the cost of holding a non-yielding asset.

China's significant increase in gold purchases and ongoing geopolitical tensions in the Middle East are also contributing to rising demand for gold. The upcoming U.S. CPI report on Wednesday will be crucial, as it could influence Fed policy and impact gold prices depending on inflation trends.