Weaker Jobs Data Boosts Gold Amid Slowing Rate Hike Expectations
The US nonfarm payrolls report showed a weaker-than-expected employment growth, which reduced expectations for further Federal Reserve interest rate hikes. The jobs data release sparked a rally in gold prices as investors turned to the metal as a safe-haven asset.
According to the Bureau of Labor Statistics, the US economy added fewer jobs than anticipated in the latest reporting month. This softer labor market data has led traders to reduce their bets on additional rate increases by the Fed, which typically supports gold prices by lowering its opportunity cost.
The precious metal has been sensitive to shifts in monetary policy expectations, and the latest jobs report provided a clear catalyst for bullish momentum. Gold prices climbed to a session high following the data release, extending its weekly gains.