Spot gold prices surged to test $4,180 per ounce on Friday, driven by a sharp recalibration of Federal Reserve policy expectations following weaker-than-expected US labor market data.
The precious metal is set to record its first weekly gain in five sessions, reversing a prolonged period of selling pressure that had weighed on the asset class.
The breakout reflects a decisive shift in market sentiment as investors dial back bets on further US interest rate hikes.
The disappointing payroll figures have altered the trajectory of rate-path expectations, providing immediate tailwinds for non-yielding assets like gold.
This move marks a significant technical and fundamental breakout, with prices climbing sharply from recent lows.
The rally underscores the sensitivity of commodity markets to US macroeconomic data.