Dollar Tumbles on Weak US Jobs Report, Boosting Gold Amid Fed Rate Reassessments

A weak US jobs report caused the Dollar to plummet, forcing the Federal Reserve to reassess its rate hike plans and boosting Gold.

The Bureau of Labor Statistics reported a loss of 23,000 jobs in July, missing market expectations of an increase of 80,000. The data was further weakened by downward revisions to previous months' employment numbers, wiping out a combined 103,000 jobs from May and June.

This disappointing news stripped the Greenback of its recent momentum, triggering a sharp correction across the US Dollar Index and sending Treasury yields lower as investors reassessed the health of the American labor market.

The Federal Reserve's focus is shifting toward its employment mandate, with expectations of near-term rate hikes evaporating. Analysts noted that policymakers will lean heavily on upcoming Consumer Price Index data before finalizing their next steps.