Gold futures rose as soft jobs data pressured Treasury yields.
Gold futures experienced a notable rally, climbing in three of the last four sessions to reach their highest level since mid-June. This upward momentum was heavily influenced by the July jobs report, which revealed an unexpected decline of 23,000 non-farm payrolls against forecasts of an 80,000 gain. Furthermore, downward revisions to the previous two months shed an additional 103,000 jobs. This softer labor data shifted market expectations, driving Treasury yields lower and decreasing the opportunity cost of holding gold. Simultaneously, the U.S. dollar weakened, adding another fundamental tailwind for the precious metal. With the CME FedWatch tool now indicating the probability of a September rate hike dropping below 50% under Fed Chair Kevin Warsh, gold found solid fundamental support to close the week on a higher note.
Gold futures experienced a notable rally, climbing in three of the last four sessions to reach their highest level since mid-June.
This upward momentum was heavily influenced by the July jobs report, which revealed an unexpected decline of 23,000 non-farm payrolls against forecasts of an 80,000 gain.
Furthermore, downward revisions to the previous two months shed an additional 103,000 jobs.
This softer labor data shifted market expectations, driving Treasury yields lower and decreasing the opportunity cost of holding gold.
Simultaneously, the U.S. dollar weakened, adding another fundamental tailwind for the precious metal.
With the CME FedWatch tool now indicating the probability of a September rate hike dropping below 50% under Fed Chair Kevin Warsh, gold found solid fundamental support to close the week on a higher note.