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July 3 Gold rose more than 1% on Friday and was
set for its first weekly gain in five, as investors dialled back
expectations for US rate hikes following softer-than-expected
jobs data.
Spot gold was up 1.3% at $4,177.31 per ounce, as of
0416 GMT, hitting its highest level since June 23. US gold
futures for August delivery gained 1.6% to $4,190.70.
Bullion was on track for a weekly gain of 2.2%, its first
since the week ended May 29, as weaker-than-expected non-farm
payrolls and private payrolls data tempered concerns around
inflation and higher-for-longer interest rates.
The dollar was headed for a weekly drop, making
greenback-priced bullion more affordable for holders of other
currencies.
“What we’re seeing is a reduction in the pricing of Federal
Reserve interest rate hikes for the rest of this year, as well
as Q1 next year, and that has been primarily driven by a rather
lacklustre labour market data yesterday,” said Kelvin Wong, a
senior market analyst at OANDA.
US non-farm payrolls increased by 57,000 jobs last month,
sharply lower than the 110,000 expected by economists in a
Reuters poll.
Traders are now pricing in roughly a 54% chance of a rate
hike in September, down from 66% before the data, according to
the CME FedWatch Tool.
Higher interest rates typically weigh on non-yielding gold,
as they make interest-bearing assets more attractive.
Rate-hike expectations have not fully disappeared, said
Wong, adding that gold could still face pressure later this
year, with prices potentially falling towards $3,500 an ounce.
Meanwhile, the World Gold Council said central banks were
back in buying mode in May and, based on the latest reported
data, official gold reserves increased by a net 41 tonnes during
the month.
Spot silver rose 2.3% to $62.41 per ounce, platinum
gained 2.5% to $1,656.05, and palladium climbed 1%
to $1,281. All three metals were near their highest levels in
more than a week and headed for weekly gains.
Published on July 3, 2026
