BENGALURU- Gold prices extended gains on Friday to their highest level in over a month following key US jobs data that showed the labor market was softening, lifting expectations around a Federal Reserve interest rate cut in September.
Spot gold was up 1.3 percent at $2,385.63 per ounce. Bullion is up more than 2 percent for the week so far.
US gold futures settled 1.2 percent higher to $2,397.7.
“Gold is trading at one-month highs as lower payroll revisions and yet another uptick in the unemployment rate help ‘cement’ a September rate cut,” said Tai Wong, a New York-based independent metals trader.
“Bulls are eyeing a return to $2,450 all-time highs if the Fed starts openly hinting at September,” he added.
Data showed US non-farm payrolls grew by 206,000 jobs in June, slightly higher than the 190,000 new jobs estimated by economists polled by Reuters.
Meanwhile, estimated job growth for May was revised down to 218,000 new jobs from 272,000, while April’s job growth was revised down to 108,000 new jobs from a previous 165,000. The unemployment rate rose to 4.1 percent, slightly higher than the estimated 4.0 percent.
