During the U.S. trading session on Friday (August 1), gold prices rose by more than 1.5% during the session, hitting a one-week high, driven by the U.S. non-farm payroll data that fell short of expectations, boosting hopes for a Federal Reserve interest rate cut, and the new tariff announcement stimulating safe-haven demand.



As of 00:27 Beijing time on Saturday, spot gold rose 1.8%, or 1.56%, to $3,341.14 per ounce, reaching its highest level since July 25. So far this week, gold prices have risen 0.4%. U.S. gold futures rose 1.6% to $3,403.

"The jobs data came in below expectations but slightly above the lowest market forecast," said Bart Melek, head of commodity strategy at TD Securities. "This increases the likelihood of a rate cut by the Federal Reserve later this year." Gold, as a non-yielding asset, typically performs well in a low-interest rate environment.

The U.S. Department of Labor's Bureau of Labor Statistics reported that non-farm payrolls increased by only 73,000 in July, far below the market expectation of 110,000, and the June data was revised down to only 14,000, indicating a significant slowdown in employment growth. The unemployment rate rose to 4.2%, indicating that the labor market is cooling.

Market participants currently expect the Fed to cut interest rates twice before the end of the year, starting in September, according to the CME's FedWatch tool.

Earlier this week, the Federal Reserve kept interest rates unchanged at 4.25%-4.50%. Chairman Powell said it was too early to judge whether there would be a rate cut in September and that attention should be paid to inflation and employment data.

Melek also said: "We have inflationary pressures from tariffs and wages, but the employment data is disappointing. In this situation, if the Fed cuts interest rates, it will be materially positive for gold."

On the trade front, Trump imposed a new round of tariffs on exports from dozens of trading partners, including Canada, Brazil, India, and Taiwan, sending global markets tumbling as countries struggle to negotiate a more favorable deal. Gold, a safe-haven asset, is in high demand during times of economic and geopolitical turmoil.

Gold prices have risen by more than $400 so far in 2025, hitting an all-time high of $3,167.57 on April 3, driven by safe-haven demand and central bank buying.

The weak jobs data also caused the dollar to fall against major currencies, further supporting gold prices as a weaker greenback makes gold more attractive to investors holding other currencies.