03.07.2026 09:20
Gold prices rose in the US after employment data fell short of expectations. With weakening expectations of a Fed rate hike, spot gold reached its highest level in the last five weeks, while gram gold exceeded 6,290 lira. Experts warned that despite the rise, there remains a risk of a pullback towards $3,500 per ounce by the end of the year.
The non-farm and private sector employment data released in the US fell below expectations, leading to a strong rise in gold prices.
Spot gold rose 1.4% to $4,179.94, reaching its highest level since June 23. US gold futures for August delivery gained 1.6% to $4,193.20.
Thus, gold is set to achieve its first weekly gain in five weeks, rising approximately 2.3% on a weekly basis. Domestically, gram gold gained over 1.5% and traded at 6,290 lira levels.
WEAK EMPLOYMENT DATA BOOSTED GOLD
According to data released by the US Department of Labor, non-farm employment increased by only 57,000 in July. Market expectations were for an increase of 110,000.
The below-expectation data weakened expectations for the US Federal Reserve's (Fed) interest rate hikes and caused a decline in the dollar index.
The depreciation of the dollar made gold, which is priced in dollars, more attractive for investors using other currencies.
INTEREST RATE HIKE EXPECTATIONS RETREATED
According to CME FedWatch data, investors' expectations for a rate hike in September fell from 66% before the employment data to 54% after the data.
OANDA Senior Market Analyst Kelvin Wong stated that the weak labor market data changed expectations regarding the Fed's tight monetary policy, noting that the decline in the likelihood of a rate hike supported gold prices.
EXPERTS WARN OF $3,500
Kelvin Wong urged investors to remain cautious despite the rise. Wong said that a new wave of weakness in gold prices could be seen towards the end of the year, and in this scenario, there is a risk of gold falling to $3,500 per ounce.
CENTRAL BANKS CONTINUE BUYING GOLD
According to data from the World Gold Council (WGC), central banks continued their gold purchases in May. The report indicated that official gold reserves increased by a net 41 tons in May. Experts note that central bank purchases remain one of the key factors supporting gold prices.
OTHER PRECIOUS METALS ALSO ROSE
The rise in gold was reflected in other precious metals. Spot silver increased 2.3% to $62.43, platinum rose 2.7% to $1,660.05, and palladium gained 1.3% to $1,284.40. All three metals are set to close the week with gains.