Gold prices climbed more than 2% on Thursday, extending a rally triggered by disappointing US nonfarm payrolls data.
The labor market report signaled a cooling economy, prompting investors to scale back expectations for further Federal Reserve interest rate hikes in 2026.
The precious metal’s advance reflects a broader repricing of monetary policy expectations.
With the labor market showing signs of softening, the case for aggressive tightening has weakened, reducing the opportunity cost of holding non-yielding assets like gold.
This dynamic has provided a tailwind for the metal, which has been sensitive to shifts in the Fed’s policy trajectory.
The move comes after a period of volatility in US labor data.