Gold Surges 5% on Weaker Oil Prices, Anticipation of US Employment Data
Gold prices surged on Friday, marking their biggest weekly gain since January 2026. The rally was fueled by weaker oil prices and investors' anticipation of US employment data that could provide clues on the Federal Reserve's interest rate path.
Spot gold rose 0.4% to $4,254.11 per ounce at 1:56 AM GMT, while US gold futures increased 0.3% to $4,312.00 per ounce. Analyst Matt Simpson from StoneX attributed the rise in gold prices to easing tensions in the Middle East, which lowered inflation expectations.
Simpson stated that 'expectations of peace in the Middle East have pushed inflation expectations lower, allowing gold to break out of several weeks of consolidation above the $4,000 level.'
The US July non-farm payrolls (NFP) report is expected to be a key guide for the Federal Reserve's next monetary policy decision. Simpson noted that the $4,000 per ounce level has become a strong support area for gold prices.