Gold prices surging higher as U.S. economy loses 23k jobs in July

Gold prices are once again surging higher, driving to $4,350 an ounce as the U.S. economy lost jobs last month, significantly missing expectations. The Bureau of Labor Statistics reported on Friday that U.S. nonfarm payrolls fell by 23,000 in July. The jobs number missed consensus forecasts; economists had anticipated job gains of around 85,000. This is the second contraction in the labor market this year. The gold market is seeing significant buying momentum in its initial reaction to the disappointing labor market data. Analysts said that gold investors are now anticipating that the Federal Reserve will be limited in raising rates this year, even in the face of persistent inflation fears, capping real yields. Spot gold last traded at $4,363.70 an ounce, up nearly 3% on the day. Bond markets continue to price in a rate hike in September. The CME FedWatch Tool shows markets see a roughly 50/50 chance of a rate hike in September.