Now Reading: Gold hits seven-week high as weak US jobs data dents rate hike bets
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Gold hits seven-week high as weak US jobs data dents rate hike bets
Gold hits seven-week high as weak US jobs data dents rate hike bets
Gold surged to $4,336.02 per ounce on Friday, its highest in seven weeks, after US nonfarm payrolls unexpectedly fell by 23,000 jobs in July, far below the 80,000 forecast. The data slashed…
The Story in Brief
Gold surged to $4,336.02 per ounce on Friday, its highest in seven weeks, after US nonfarm payrolls unexpectedly fell by 23,000 jobs in July, far below the 80,000 forecast. The data slashed the probability of a September rate hike from 57% to 43.9%, according to LSEG data, making bullion more attractive. The rally was the strongest since January, with gold gaining over 7% for the week. MCX gold traded around Rs 1,31,850 per 10 grams. The Jobs report also added to a backdrop of a weakening dollar and falling Treasury yields, with diplomatic signals from the West Asia contributing to the safe-haven demand. Spot silver rose 3% to $63.29 per ounce, and platinum and palladium also posted weekly gains.
The Indian Opinion
The rally’s twin drivers, a soft jobs report and West Asia peace talk, are being treated as equally powerful, but the numbers tell a different story. The ADP payrolls miss and the surprise NFP decline (23,000 jobs lost against 80,000 expected) clearly shifted rate expectations. The geopolitics factor, while real, is harder to quantify. The test is whether gold can hold above $4,200 after the next NFP print, without another diplomatic headline. If rate cut bets fade, so will the metal’s sheen.
Sources (2): livemint.com, thehindubusinessline.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
