Now Reading: Gold reaches seven-week high after weak US jobs data
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Gold reaches seven-week high after weak US jobs data
Gold rose 2.3% to $4,336.02 an ounce on Friday, reaching its highest level in seven weeks after US nonfarm payrolls fell by 23,000 in July. Economists polled by Reuters had expected an…
The Story in Brief
Gold rose 2.3% to $4,336.02 an ounce on Friday, reaching its highest level in seven weeks after US nonfarm payrolls fell by 23,000 in July. Economists polled by Reuters had expected an increase of 80,000 jobs. US gold futures settled 2.3% higher at $4,399.70.
The weak data reduced market expectations of a US Federal Reserve rate hike in September. LSEG data put the chance of a hike at 43.9%, down from 57% before the report. Gold was up more than 7% for the week, its strongest weekly gain since January. Silver, platinum and palladium also headed for weekly gains.
The Indian Opinion
Claims that one weak jobs report guarantees cheaper money or an endless gold rally are premature. The immediate move reflects changing rate expectations, while gold still depends on the dollar, inflation and future employment data. UBS sees prices reaching $5,000 an ounce in the first half of 2027, but that is a forecast, not a certainty. The next US jobs report and the Fed’s September decision will provide the clearer test.
Source: livemint.com
This story was synthesised by AI from the source linked above.
