Weaker Jobs Data Sends Gold Prices Soaring Amid Rate Hike Fears

Gold prices rose over 1% on Friday after weaker-than-expected US jobs data for September eased concerns about a Federal Reserve rate hike this month. However, gold is still poised to record a weekly loss.

The spot price of gold increased by 1.1% to $4,223.49 per ounce as of 09:05 a.m. EDT (1305 GMT), while US gold futures gained 1.2% to $4,254.10. The US dollar edged lower after the data showed US job growth slowed more than expected in September.

Economists polled by Reuters had forecast payrolls advancing 90,000 after a previously reported 162,000 surge in August, but the actual increase was only 29,000. This has reduced the chances of a rate hike this month to around 14%, down from 28% before the jobs data and around 70% earlier in the week.

Marex analyst Edward Meir said that interest rate hike expectations have dropped slightly, weakening the dollar and leading to the rally in gold. However, he noted that the charts still look fairly grim and gold could push lower if the rate cycle resumes its ascent.