Gold prices rose sharply on Friday, after the precious metal climbed more than one percent, heading for its first weekly gain in five weeks.
The positive performance comes after U.S. data showed a slowdown in job growth, boosting investors’ expectations that interest rate hikes would be delayed.
Spot gold rose one or four percent to $4,179 and ninety-four cents an ounce.
This is the highest level recorded since June 23.
U.S. futures for August delivery also climbed by one or six percent.
to four thousand one hundred and ninety-three dollars and twenty cents an ounce.
The rally followed data showing that the U.S. labor market grew less than expected in June, easing fears that inflationary pressures will continue.
It also prompted investors to reassess the Fed’s monetary policy trajectory.
Meanwhile, the dollar fell to record a weekly loss, which gave gold prices additional support.
The precious metal has become less expensive for investors who deal in other currencies.
Data from FedWatch showed that market expectations for a rate hike in September fell to around 54 percent.
It was close to sixty-six percent before the release of the employment data.
This decline is a positive factor for gold, as lower interest rates reduce the attractiveness of yield-generating assets.
The gains were not limited to gold, with silver up two to three percent.
Platinum rose two to seven percent, and palladium gained one to three percent.
All precious metals are heading higher to end the week, as investors continue to follow economic data.
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