Gold closes at two-month high, records weekly gain

Lower oil prices and easing inflation expectations supported bullion.

Gold prices closed Friday at their highest level since June 17, posting a sharp weekly gain, supported by reduced expectations for monetary tightening in the United States.

The US monthly jobs report showed the economy lost 23,000 jobs in July, while employment figures for June and May were revised downward, prompting investors to lower their expectations for a Federal Reserve interest-rate hike.

Gold typically becomes more attractive when interest rates decline, as the precious metal does not generate income on its own. UBS analysts forecast that gold prices could rise to $5,000 an ounce in the first half of 2027.