Spot gold prices climbed sharply to test $4,180 per ounce, marking a significant breakout driven by disappointing US labor market data.

The move comes as investors recalibrate their outlook on Federal Reserve policy, with the weaker-than-expected non-farm payrolls report reducing the likelihood of further interest rate hikes.

The precious metal’s advance reflects a decisive shift in market sentiment.

After a period of selling pressure, gold is now positioning for its first weekly gain in five trading sessions.

The rebound was supported by a combination of the soft jobs data and declining oil prices, which together have heightened investor caution and demand for safe-haven assets.

This development underscores the growing sensitivity of commodity markets to US economic indicators.