FX.co ★ Gold Holds Gains on Weak US Jobs Data

Gold traded above $4,100 an ounce on Friday, holding on to gains of more than 2% from the previous session. The rally was supported by weaker-than-expected US employment data, which led traders to scale back expectations for further Federal Reserve rate hikes. The US economy added only 57,000 jobs in June, the smallest increase in four months and well below the consensus forecast of 110,000, while the unemployment rate held at 4.2%. That followed a report on Wednesday showing that private-sector job creation also missed estimates. Fed funds futures now assign roughly a 50% probability to a rate hike in September, down from 67% before the latest labor market data. Fed Chair Kevin Warsh said this week that inflation expectations are moderating, while reiterating the central bank’s commitment to price stability. Gold was also supported by softer oil prices and easing inflation concerns, as commercial shipping through the Strait of Hormuz continued to recover amid progress in US–Iran negotiations.