Gold Prices Surge Amid Rate Hike Uncertainty
Gold prices surged to their highest level in over two months on Tuesday, rising around 0.5% to approximately $4,400 an ounce.
This rally comes after a weaker-than-expected US jobs report was released last Friday, which led markets to reassess the likelihood of a Federal Reserve rate hike next month.
The soft payrolls figure showed the economy shed around 23,000 positions in July, despite a slight decrease in the unemployment rate to 4.1% from June's 4.2%.
The lower rate expectations are supporting gold prices, as the metal yields no interest and becomes more attractive when rates are low or expected to fall.
The Federal Reserve left rates unchanged at its July meeting, with three officials dissenting in favor of raising them, highlighting the central bank's ongoing debate on monetary policy.