Gold Extends Gains as Weak US NFP Data Dents Fed Rate Hike Expectations

Gold (XAU/USD) continued its upward move on Friday, building on the momentum from Thursday's US labor market report. The weaker-than-expected Nonfarm Payrolls (NFP) data weighed heavily on the US Dollar, sending the greenback lower against major peers.

The disappointing jobs numbers cooled expectations that the Federal Reserve would deliver another rate hike at its upcoming meeting. A slower pace of tightening typically supports non-yielding assets like gold, as it lowers the opportunity cost of holding the metal.

As a result, the XAU/USD pair pushed higher, extending the rally that began after the NFP release. Market participants will now focus on any additional Fed commentary for further direction.