Gold Surges as Weak Jobs Data Fuels Fed Rate Cut Bets

Spot gold prices rose over 1% to surpass $3,340 per ounce on Friday, as the latest US jobs report added to evidence of a cooling labor market and strengthened expectations of a Federal Reserve rate cut in September. The US economy added just 73,000 jobs in July, falling short of the 100,000 projected by analysts, while the unemployment rate ticked up to 4.2%, up from 4.1% in June. In response, markets are now pricing in a 75% probability of a September rate cut—up sharply from 45% prior to the report. The data followed stronger-than-expected PCE inflation figures released on Thursday, which highlighted persistent price pressures and further complicated the Fed’s policy outlook. Separately, President Trump reaffirmed plans for a 10% global base tariff and introduced new retaliatory duties of up to 41% on countries lacking trade agreements with the US. He also announced a 40% tariff on goods suspected of being rerouted through third countries to evade existing duties.