Gold Surges More Than 2% on Weak Jobs Data and Fed Chair Remarks
Gold posted sharp gains after disappointing jobs figures and comments from Fed Chair Warsh rattled markets and boosted safe-haven demand.
Gold prices jumped more than 2% Friday after a weaker-than-expected U.S. jobs report and remarks from Federal Reserve Chair Kevin Warsh combined to drive investors toward safe-haven assets, sending the precious metal sharply higher in active trading. The dual catalysts gave bulls fresh ammunition to push gold to notable session gains as uncertainty over the economic outlook intensified.
Soft labor market data tends to signal potential economic weakness, prompting traders to reassess the Federal Reserve's rate path. When jobs numbers disappoint, expectations for prolonged or deeper rate cuts can rise, which typically weakens the dollar and makes dollar-denominated gold more attractive to global buyers.
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Warsh's comments added another layer of uncertainty. Fed leadership remarks that hint at policy flexibility or acknowledge downside risks often accelerate moves into gold, which carries no yield but benefits from environments where real interest rates are under pressure or investor confidence wavers.
The metals market has remained sensitive to any signals from Washington and the Fed in recent months, with gold already trading at elevated levels amid persistent geopolitical and macroeconomic concerns. A combination of labor market softness and central bank commentary is among the most potent short-term triggers for gold price momentum, analysts broadly note.
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