Spot gold climbed 0.8% to $4,063.56 per ounce, reaching a one-week high as investors reacted to softer-than-expected U.S. jobs data.
The rally was further supported by declining oil prices, which reduced inflationary pressures and strengthened the case for monetary policy accommodation.
The move marks a sharp reversal from late June, when gold was on track for its steepest monthly decline since 2008 amid mounting bets on further rate hikes.
Instead, the latest labor market weakness has shifted sentiment, with traders now pricing in a higher probability of Federal Reserve rate cuts in the coming months.
Gold’s ascent reflects broader cross-asset repricing.
As oil prices softened, the dual effect of lower input costs and diminished inflation expectations bolstered demand for non-yielding assets.