Gold Surges Above $3,340 on Weak US Jobs Data, Fed Rate Cut Bets Rise

Gold prices surged above $3,340 an ounce following the release of weaker-than-expected U.S. jobs data in July 2025, which showed only 73,000 new jobs added, well below analyst forecasts. This slowdown in hiring, coupled with a slight rise in the unemployment rate to 4.2%, raised concerns about the strength of the U.S. labor market and increased expectations that the Federal Reserve may cut interest rates in September, with market probabilities for a rate cut jumping to around 67%. The softer labor market data also led to a drop in the U.S. dollar and Treasury yields, prompting investors to seek safety in gold and bonds. Technical analysis indicates gold is holding above key moving averages with potential price targets up to $3,550 an ounce. Meanwhile, President Trump announced new tariffs, including a 10% global base tariff and additional duties up to 41% on countries without trade agreements, which could further impact economic and trade dynamics. These developments underscore growing uncertainty in the economic outlook, influencing investor behavior across markets.