Gold prices surged during the European session on Friday (August 7), rising over 2.30% in a single day and over 7% in a single week. US employment data was mixed: non-farm payrolls fell short of expectations, but the unemployment rate remained stable. At the time of writing, spot gold was trading at $4340 per ounce, having earlier touched $4371 per ounce, a new high since June 17. Weak non-farm payroll data and declining US Treasury yields sent spot gold surging over 7% in a single week. The US July non-farm payroll data disappointed the market, showing a loss of 23,000 jobs, compared to market expectations of 80,000 new jobs. The May and June non-farm payroll data were both revised downwards, with a combined downward revision of 103,000 jobs over the two months, a significant narrowing of the employment figure compared to previous reports. While this data confirms the rationale behind the Federal Reserve's reluctance to raise interest rates to combat inflation, the unemployment rate fell slightly from 4.2% to 4.1%. Following the data release, US Treasury yields and the US dollar both declined. The yield on the 10-year US Treasury note fell 2 basis points to 4.687%, providing support for gold prices. The US dollar index fell 0.42% to 99.54 during the session. Richmond Fed President Thomas Barkin stated, "The employment data fully reflects the supply-demand imbalance and weak economic conditions in some sectors." He added that the report indicates the labor market is in a state of "low hiring, low layoffs." Energy prices fell, further dampening expectations of a Fed rate hike . Geopolitical tensions continued to roil financial markets, with expectations rising for the Strait of Hormuz to reopen. US President Trump stated that he believes the conflict with Iran may soon end. However, Iran stated that the reported agreement with Oman only establishes a temporary shipping lane (which aims to prohibit US and Israeli ships from passing through the strait), not a full reopening. US West Texas Intermediate (WTI) crude oil was essentially flat at around $78 per barrel, but fell nearly 9.9% for the week. Swap market pricing indicates a further decrease in the probability of a Fed rate hike at its September meeting. PrimeTerminal data shows the current probability of a September rate hike is only 30%, down from 58% the previous day; the probability of keeping rates unchanged is 70%. Traders will focus on Wednesday's release of the US July Consumer Price Index (CPI). Economists predict that inflation will fall slightly year-on-year from 3.5% to 3.4%, and core CPI will decline from 2.6% to 2.5%. The Producer Price Index (PPI) will be released on Thursday. This indicator is a key reference for the Federal Reserve's core Personal Consumption Expenditures (PCE) price index, a major inflation gauge. Spot gold technical analysis: Gold prices are challenging the 100-day moving average, with bulls targeting the 200-day moving average. (Spot Gold Daily Chart Source: FX678) Gold prices have regained bullish momentum, now standing above the 50-day Simple Moving Average (SMA) at $4152/oz and is challenging the 100-day moving average at $4390/oz. The Relative Strength Index (RSI) indicates that market momentum has turned bullish, with minimal upward resistance. The next key target is the 200-day moving average at $4390/oz. A decisive break above this level would target the next significant resistance at $4450/oz, followed by the $4500 mark. On the downside, the previous high of July 6th has now become the first support level at $4202/oz. A break below this level would target the 50-day moving average at $4152/oz and then $4100; further down, the intraday low of August 3rd at $4019/oz provides further support. At 02:05 Beijing time, spot gold was trading at $4340.12/oz, up 2.35%.