Gold prices surged on August 7, 2026, to their highest in seven weeks, fueled by a surprising drop in U.S. nonfarm payrolls, which fell by 23,000 in July, defying an expected gain of 80,000 jobs. This weak jobs report reduced expectations for a Federal Reserve interest rate hike, with futures now indicating only a 43.9% chance of tightening in September. As a result, gold prices increased significantly, with spot gold rising 2.3% to $4,336.02 per ounce and U.S. gold futures settling at $4,399.70. The overall gold market is on track for its largest weekly gain since January, with a 7% increase this week. Additionally, silver, platinum, and palladium also saw price increases, indicating a strong overall performance in precious metals.

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Summary
US July nonfarm payrolls -23,000 vs +80,000 estimate
US rate futures cut chances of September rate hike
Silver, platinum and palladium head for weekly gains

Aug 7 (Reuters) - Gold surged on Friday, hitting its highest in seven weeks, after an unexpected ‌drop in U.S. nonfarm payrolls for July dashed rate-hike hopes and set bullion on course for its best week in seven months.

Spot gold jumped 2.3% to $4,336.02 per ounce by 2:42 p.m. EDT (1842 GMT), having risen more than 3% to its highest since June 17.

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gold vs dollar

Bullion is set to post its largest weekly rise since January 19, with prices gaining ⁠more than 7% so far this week. U.S. gold futures climbed 2.3% to settle at $4,399.70.

gold weekly moves

Nonfarm payrolls in the United States decreased by 23,000 jobs last month after a downwardly revised 20,000 increase in June, the U.S. labor department's Bureau of Labor Statistics said. Economists polled by Reuters had forecast an increase of 80,000 jobs.

"The weaker-than-expected jobs data presents a scenario where the Fed is going to be less likely to raise interest rates at its next meeting," said David Meger, director of metals trading at High Ridge Futures.

Declining energy prices and a potentially reduced likelihood ‌of ⁠U.S. interest rate increase portend to a weaker dollar and stronger gold prices, Meger said.

The rate futures market has now priced in a 43.9% chance of Fed tightening in September, compared with 57% before the jobs report, according to LSEG data. The probability that the Fed will hold rates next month rose to ⁠56.1% versus 43.2% just before the data release.

Lower interest rates make gold more attractive relative to yield-bearing assets as bullion does not generate interest.

UBS expects gold prices to climb to $5,000 per ounce in the first ⁠half of 2027, it said in a note on Friday.

On the geopolitical front, U.S. President Donald Trump told reporters that he believed the war with Iran would be over soon.

Among other metals, spot ⁠silver , gained 3% to $63.29 per ounce, platinum firmed 1.1% to $1,747.60, and palladium rose 0.8% to $1,381.61. All three metals were headed for weekly gains.

Reporting by Sukanya Mitra and Swati Verma in Bengaluru; additional reporting by Anjana Anil; Editing by Tasim Zahid

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Swati breaks news and handles coverage of the global commodities and energy markets.

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