Soft nonfarm payrolls data eased rate hike fears, lifting gold and pressuring the US dollar in recent trading sessions.
Gold prices reversed a recent downtrend, climbing as softer-than-expected US nonfarm payrolls data reduced expectations for further Federal Reserve rate hikes. The US dollar index pulled back in response, extending losses after the jobs report signaled cooling labor market conditions.
Prior to the release, markets had priced in a higher probability of additional tightening, weighing on non-yielding assets like gold. The shift in sentiment also provided relief for tech stocks, which had faced pressure amid concerns over an AI-driven market bubble.
The move underscored investor sensitivity to economic data that could influence monetary policy, with metals and equities reacting positively to signs of potential policy easing.