Spot gold climbed 1% to $4,165.29 per ounce on Friday, positioning the metal for its first weekly gain in five trading sessions.
The rebound marks a decisive shift in sentiment after a prolonged period of selling pressure, driven by a sharp recalibration of Federal Reserve policy expectations following weaker-than-expected US labor market data.
The move comes after spot gold had previously tested $4,180 per ounce earlier in the session, highlighting the volatility surrounding the macro data release.
The price action reflects a rapid unwind of rate-hike bets by investors.
As the labor market showed signs of softening, the market consensus shifted away from the prospect of further tightening by the Federal Reserve.
This pivot provided immediate support for non-yielding assets, with gold benefiting from the lower real-rate environment and reduced opportunity cost of holding the metal.
The move comes after spot gold had previously tested $4,180 per ounce earlier in the session, highlighting the volatility surrounding the macro data release.