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Gold jumps to seven-week high after US jobs surprise
Spot gold rose 2.3% to $4,336.02 per ounce and is set for a weekly gain of more than 7% as rate-hike odds were dialed down after July nonfarm payrolls fell.
Gold surged on Friday to its highest level in seven weeks, extending gains after U.S. nonfarm payrolls for July unexpectedly declined, which weakened expectations for a Federal Reserve rate hike. Spot gold climbed 2.3% to $4,336.02 per ounce by 2:42 p.m. EDT, after rising more than 3% to a level last seen since June 17.
The drop in payrolls reversed hopes for tighter policy, with the U.S. Bureau of Labor Statistics reporting nonfarm payrolls fell by 23,000 jobs in July after a downwardly revised 20,000 increase in June. Economists surveyed by Reuters had expected payrolls to rise by 80,000, according to the report, and the rate futures market cut its pricing of a September Fed tightening to a 43.9% chance from 57% prior to the data release.
A metals trading official said the weaker jobs report makes the Fed less likely to raise rates at its next meeting. He also pointed to falling energy prices and a weaker dollar outlook as supportive factors for gold, which does not generate interest.
In addition to gold, silver rose 3% to $63.29 per ounce, platinum added 1.1% to $1,747.60, and palladium increased 0.8% to $1,381.61, with all three metals on track for weekly gains. The report also cited an UBS outlook that gold could reach $5,000 per ounce in the first half of 2027.
Latest closeGold $4,292.00 ▲1.1%|Silver $61.56 ▼0.9%|Platinum $1,734.50 ▼0.2%