Gold jumps as cooling US jobs report solidifies rate cut hopes
US unemployment rate rises to 4.3% in July
Spot gold has gained 3.2% so far this week
Silver, platinum, palladium head for weekly rises
Updates prices, adds comment
By Rahul Paswan
Aug 2 (Reuters) -Gold prices hit their highest in over two weeks on Friday as Treasury yields and the dollar declined after data showed the U.S. economy created fewer jobs than expected in July, boosting hopes of rate cuts by the Federal Reserve this year.
Spot gold XAU= was up over 1% at $2,472.59 per ounce as of 1415 GMT, just $11 shy of the record peak of$2,483.60 scaled on July 17. U.S. gold futures GCcv1 climbed 1.4% to $2,516.50.
Gold has gained 3.2% so far this week, on track for its best week since April, as rising safe-haven demand from Middle East tensions and expectations of rate cuts made the metal more appealing for investors.
"Lower yields, some safe-haven buying and then the idea of a weakening economy which is bringing rates lower along with the dollar, all of those are in support of the gold market," said David Meger, director of alternative investments and trading at High Ridge Futures.
Bullion is traditionally considered a hedge against geopolitical and economic risks, and lower interest rates reduce the opportunity cost of holding the asset.
U.S. 10-year yields US10YT=RR dropped to their lowest since December and the dollar .dxy hit its lowest since March after data showed that employers added fewer jobs in July than economists had forecast, while the unemployment rate increased to 4.3%. US/ USD/
The data follows comments from Fed Chair Jerome Powell who on Wednesday said that rates could be cut as soon as September if the U.S. economy follows its expected path.
"The marketplace just now is factoring in a better-than-70% chance for a 50-basis-point cut by the Fed at the September FOMC meeting," said Jim Wyckoff, senior market analyst at Kitco Metals in a note.
Elsewhere, spot silver XAG= added 0.8% to $28.78 per ounce, platinum XPT= rose 0.8% to $966.60 and palladium XPD= dropped 1.2% to $894.37. All three metals were headed for weekly gains.
Spot gold price in USD per oz https://reut.rs/4c93qbY
Reporting by Rahul Paswan in Bengaluru; Editing by Shailesh Kuber and Vijay Kishore
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