June US payrolls rose by 57K, missing forecasts, pushing back Fed rate hike expectations and lifting XAU/USD above $4,185.
Gold prices climbed on Friday after US Nonfarm Payrolls data fell short of expectations, weakening the USD and reducing bets on an imminent Federal Reserve rate hike. XAU/USD rose 1.5% to $4,185, rebounding from a seven-month low of $3,949 earlier in the week.
The US economy added just 57K jobs in June, nearly half the 110K forecast. The US Dollar Index (DXY) dropped to near two-week lows at 100.76. Markets now see a 53% chance of a September rate hike, down from 63%, while December odds remain at 76.8%.
The shift in Fed expectations eased pressure on non-yielding gold, which had corrected 28% from its January high near $5,600. Further gains may hinge on upcoming macroeconomic data, including inflation trends.