Gold Surges Over 2% as Weak US NFP Data Hits US Dollar
Gold (XAU/USD) rallies more than 2% after a weak US employment report reduces the likelihood of a Federal Reserve rate hike, sending the US Dollar and Treasury yields lower. The pair is trading at $4,111.
Gold prices surged over 2% on Thursday following the release of weaker-than-expected US Nonfarm Payrolls (NFP) data. The report lowered expectations for a Federal Reserve rate hike, which pressured the US Dollar and pushed US Treasury yields lower.
The XAU/USD pair bounced off its daily lows and currently trades near $4,111. The weak labour market data bolstered demand for the precious metal as a safe-haven asset, while the dollar index declined broadly.
Traders are now reassessing the Fed's policy path, with a softer jobs report suggesting the central bank may hold off on tightening further. This environment typically supports non-yielding assets like gold.
Source: FXStreet Forex News