Gold Surges to Seven-Week High on Weak US Jobs Data
Gold prices surged on Friday to a seven-week high after the release of weak US jobs data for July. The unexpected drop in nonfarm payrolls, which fell by 23,000 last month, dented rate-hike hopes and set bullion on course for its best week in seven months.
The spot gold price jumped 2.3% to $4,336.02 per ounce by 2:42 p.m. EDT (1842 GMT), marking a new high since June 17. This represents the largest weekly gain since January 19, with prices increasing more than 7% so far this week.
US gold futures also climbed 2.3% to settle at $4,399.70. Economists polled by Reuters had forecast an increase of 80,000 jobs in July, but the actual number was significantly lower.
The weaker-than-expected jobs data has led to a reduced likelihood of a US interest rate hike in September, with the rate futures market now pricing in a 43.9% chance of Fed tightening compared to 57% before the jobs report.