Gold hits seven-week high

Gold rate surged on Friday, hitting its highest in seven ‌weeks, after an unexpected drop in U.S. nonfarm payrolls for July dashed rate-hike hopes and set bullion on course for its best week in seven months.

Spot gold jumped 2.4% to $4,341.69 per ounce ​by 10:57 a.m. EDT (1457 GMT), having surged over 3% to its highest since ​June 17.

Bullion is set to post its largest weekly rise since ⁠January 19, with prices gaining over 7% so far this week. U.S. gold futures climbed ​2.4% to $4,402.20.

Nonfarm payrolls in the United States decreased by 23,000 jobs last month after a downwardly revised ​20,000 increase in June, the U.S. labor department’s Bureau of Labor Statistics said. Economists polled by Reuters had forecast an increase of 80,000 jobs.

“The weaker-than-expected jobs data presents a scenario where the Fed is going to ​be less likely to raise interest rates at its next meeting,” said David Meger, ​director of metals trading at High Ridge Futures.

Declining energy prices and a potentially reduced likelihood of U.S. interest rate ‌increase ⁠portends to a weaker dollar and stronger gold prices, Meger added.

The rate futures market has now priced in just a 43.9% chance of Fed tightening in September, compared with 57% before the jobs report, according to LSEG data. The probability that the Fed ​will hold rates next ​month rose to ⁠56.1% versus 43.2% just before the data release.

Lower interest rates make gold more attractive relative to yield-bearing assets as bullion does ​not generate interest.

UBS expects gold prices to climb to $5,000 per ounce ​in the ⁠first half of 2027, it said in a note on Friday.
On the geopolitical front, U.S. President Donald Trump told reporters that he believed the war with Iran would be over soon.

Gold Rates Today in Pakistan

Among ⁠other ​metals, spot silver , gained 3.4% to $63.54 per ounce, platinum ​firmed 1% to $1,745.87, and palladium rose 0.4% to $1,376.90. All three metals were headed for weekly gains.