Gold Soars on Surprise US Jobs Miss

A surprise drop in US nonfarm payrolls for July sent gold prices soaring to a seven-week high, dashing hopes of a September interest rate hike. Spot gold jumped above $4360 per ounce on Friday, its highest level since June 17.

The US labor department's Bureau of Labor Statistics reported that nonfarm payrolls fell by 23,000 in July, far below the 80,000 gain economists polled by Reuters had expected. The weaker-than-forecast data immediately reshaped rate expectations, with rate futures now pricing in roughly a 45% chance of Fed tightening in September, down from 57% before the jobs report.

The decline in energy prices and reduced likelihood of near-term rate increases are supporting gold prices. One major global bank expects gold to reach $5000 per ounce in the first half of 2027, citing a softer dollar and lower real yields drawing investors toward the metal.