Gold surges to seven-week high as US rate hike expectations fade

Gold prices soared to their highest level in seven weeks after weak US labor market data reinforced expectations that interest rate hikes are less likely, pushing the precious metal to its strongest weekly gains in seven months.

Spot gold rose 2.6% to $4,348.87 per ounce, while US gold futures climbed 2.5% to $4,408 per ounce.

The gains followed US Department of Labor data showing nonfarm payrolls fell by 23,000 in July, compared to forecasts for an increase of 80,000 jobs.

This data, along with easing expectations for further rate hikes, boosted demand for gold.

The rally was not limited to gold, as silver prices jumped 4.5% to $64.26 per ounce.

Platinum also rose 1.4% to $1,753.09 per ounce, while palladium gained 0.4% to $1,375.75 per ounce.