Gold price surge on weaker-than-expected US jobs report
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Spot gold extended its rally on Friday on a weaker-than-expected US nonfarm payroll report (June), which boosted rate cut possibility. The metal surged on Friday to close with a gain of 1.50% at $2392. It posted a weekly gain of around 2.80% . Data round-up Although the headline non-farm payroll number came in at 206k jobs, which topped the forecast of 190k jobs, the internals of the report were weak. The unemployment rate ticked up higher to 4.10% versus the forecast of 4%. It is to be noted that the unemployment rate hit a 50-year low in January and April of 2023 at 3.4%. The June data has triggered the Sahm rule, a real-time recession indicator. According to this rule, a recession is underway if the three-month moving average of the national unemployment rate rises by 0.50 percentage points or more, relative to its low during the previous 12 months. This is a positive development for the metal. The previous two-month net payroll number...