Gold Surges Past Bitcoin Amid Weaker Job Data

Gold prices surged to a seven-week high after the release of July's US jobs report. The data showed payrolls dropping by 23,000 instead of the anticipated increase of 80,000 jobs, leading investors to believe that the Federal Reserve may keep interest rates unchanged at its next meeting.

The weaker-than-expected job numbers caused a decline in UST yields and a weakening of the dollar. This environment makes gold more attractive as it does not pay interest, reducing the opportunity cost of holding the metal.

Long-term demand for gold remains strong, with central banks adding 41 metric tons to their reserves in May, according to the World Gold Council. UBS has projected that gold could reach $5,000 per ounce by the first half of 2027.