XAU/USD jumps to $4,340 after July Nonfarm Payrolls miss forecasts, fueling bets against further Fed tightening.
Gold prices climbed sharply Friday, with XAU/USD rising over 2.3% to $4,340 after US jobs data undershot expectations. The metal reached a high of $4,371, its strongest level since June 17, and posted a weekly gain exceeding 7%.
July Nonfarm Payrolls fell by 23K jobs, far below the forecasted 80K gain. Revisions to May and June data cut 103K jobs from prior reports. The Unemployment Rate edged down to 4.1%, while US Treasury yields dipped, weighing on the USD and supporting gold.
The US Dollar Index (DXY) dropped 0.42% to 99.54, reflecting diminished expectations for further Federal Reserve rate hikes. Lower energy prices and geopolitical factors also contributed to the shift in sentiment.