Gold rises 1.5%, records weekly gain

Gold bars

Gold prices closed higher on Friday, supported by rising expectations that the Federal Reserve will resume interest rate cuts in its September meeting, after the monthly jobs report raised concerns about a slowdown in the US labor market.

December gold futures gained 1.5%, or $51.20, to settle at $3,399.80 per ounce, turning in a 0.21% weekly gain.

The jobs report released earlier today showed the US economy added fewer-than-expected jobs in July, while the unemployment rate rose. Additionally, the Bureau of Labor Statistics sharply revised down job figures for the previous two months by a combined 258,000 jobs.

This triggered a sharp increase in expectations for a 25 basis-point rate cut by the Fed in its September meeting. This follows the central bank’s decision last Wednesday to keep interest rates unchanged within the 4.25%–4.50% range.

Gold also received a boost after US President Donald Trump announced new tariff hikes on dozens of countries earlier in the day, escalating global trade uncertainty and prompting investors to seek safe-haven assets.