Gold Surges 7.39% as Weak Jobs Report and Rate Expectations Spark Buying Frenzy

The gold price surged by 7.39 percent over the past five sessions, closing at $4,401.40 per ounce on Friday. This marks its strongest weekly gain since the start of the year.

The catalyst for this rally was the weak jobs report from the Bureau of Labor Statistics, which showed a contraction of 23,000 nonfarm payrolls in July, well below expectations.

This unexpected decline in payroll numbers sent rate expectations into a tailspin, with markets now pricing in a pause or even a first cut by the Federal Reserve. As a result, US Treasury yields slid, making gold more attractive relative to interest-bearing paper.

Despite this rally, physical gold ETFs such as SPDR Gold Shares (GLD) have seen persistent outflows, with cumulative redemptions of roughly $14.4 billion since March 1, 2026. In contrast, central banks have been accumulating gold at a pace not seen in years, with net purchases reaching 288.9 tonnes in Q2 2026.