NewsMarketsGold Surges Nearly 2% to One-Week High on Weak US Jobs Data and Rate Cut ExpectationsGold Surges Nearly 2% to One-Week High on Weak US Jobs Data and Rate Cut Expectations
By ScanX News Team
Gold prices jumped nearly 2% to a one-week high of $3,347.66 per ounce, driven by weaker-than-expected US payroll data and increased safe-haven demand. The disappointing jobs report, showing only 73,000 new jobs, strengthened expectations for Federal Reserve rate cuts. New tariffs announced on exports from several trading partners further boosted gold's appeal. Other precious metals also saw gains, with silver up 0.40%, platinum rising 1.20%, and palladium gaining 1.40%.
*this image is generated using AI for illustrative purposes only.
Gold prices experienced a significant uptick, jumping almost 2% to reach a one-week high, as weaker-than-expected US payrolls data bolstered expectations for Federal Reserve rate cuts. The precious metal's rise was further supported by safe-haven demand triggered by new tariffs announced on exports from several trading partners.
Gold Price Movements
Spot gold saw a robust increase of 1.80%, climbing to $3,347.66 per ounce, its highest level since July 25. Concurrently, US gold futures settled 1.50% higher at $3,399.80.
US Jobs Data Impact
The catalyst for gold's rally was the disappointing US nonfarm payrolls report. The latest data showed an increase of only 73,000 jobs, falling short of market expectations. This came after a downwardly revised figure of 14,000 jobs in the previous period. The underwhelming employment data has strengthened market expectations for potential Federal Reserve rate cuts.
Federal Reserve Rate Cut Expectations
In light of the weak jobs data, market participants are now anticipating two rate cuts by the end of the year, with the first potentially coming as soon as September. This shift in expectations follows the Fed's recent decision to keep interest rates unchanged in the 4.25%-4.50% range.
Tariff Announcements and Safe-Haven Demand
Adding to gold's appeal was a surge in safe-haven demand. This was prompted by the announcement of new tariffs on exports from multiple trading partners, including Canada, Brazil, India, and Taiwan. The news sent global markets lower, further boosting gold's attractiveness as a safe-haven asset.
Other Precious Metals
The positive sentiment in the precious metals market extended beyond gold:
| Metal | Price Change |
|---|---|
| Silver | Up 0.40% at $36.88 per ounce |
| Platinum | Rose 1.20% to $1,304.91 |
| Palladium | Gained 1.40% to $1,208.05 |
Despite these daily gains, it's worth noting that all three metals posted weekly losses.
Market Outlook
The combination of weak US employment data, expectations of Fed rate cuts, and increased global trade tensions has created a favorable environment for gold. As a non-yielding asset, gold tends to benefit from lower interest rates, which reduce the opportunity cost of holding the precious metal.
Investors and market watchers will likely keep a close eye on further economic indicators and any developments in global trade relations, as these factors could continue to influence gold prices in the coming weeks.
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