Gold prices surged to a seven-week high on Friday, driven by a sharp repricing of Federal Reserve policy expectations following a disappointing US jobs report.
The precious metal’s advance reflects growing investor confidence that the central bank will hold rates steady in September, rather than implementing a hike as previously feared.
The catalyst was the release of US July nonfarm payrolls, which showed a contraction of 23,000 jobs, a stark contrast to the 80,000 increase economists had estimated.
This significant miss has rapidly altered the trajectory of US rate futures, with markets now cutting the probability of a September rate hike.
The shift in monetary policy outlook provided immediate tailwinds for gold, which typically benefits from lower real yields and a softer dollar environment.
The rally extended beyond gold, with silver, platinum, and palladium all heading for weekly gains.