US nonfarm payrolls fell by 23,000 in July, slashing rate hike odds and lifting gold above 4,360 USD an ounce.
Spot gold surged above 4,360 USD an ounce, marking its highest level since June 17 and a 3 percent daily gain. The rally follows a sharper-than-expected 23,000 decline in US nonfarm payrolls for July, against forecasts of an 80,000 increase.
Rate futures now price a 45 percent chance of a September Fed hike, down from 57 percent before the data. The dollar weakened, and real yields softened, reinforcing gold’s upward momentum. The metal posted its largest weekly gain since January, rising over 7 percent.
A softer dollar and firmer gold typically support the AUD, though the move stems more from US rate repricing than broader risk sentiment. A hawkish Fed shift on inflation could temper the rally.