Gold prices surging higher as U.S. economy loses 23k jobs in July

Gold surged sharply after U.S. nonfarm payrolls unexpectedly fell by 23,000 in July, far below the 85,000 jobs economists expected. The weak labor report reinforced expectations that the Federal Reserve may be constrained in hiking rates further, even as inflation remains elevated. Lower rate expectations support gold by limiting real yields and improving the metal’s relative appeal as a non-yielding asset. Spot gold rose nearly 3% on the day, last trading at $4,363.70 an ounce after briefly driving toward $4,350. The report also marked the second monthly contraction in U.S. labor market data this year, adding to concerns about economic momentum and boosting safe-haven demand for precious metals.