FX.co ★ Gold Holds Firm After Weak US Jobs Report

Gold held above $4,300 an ounce on Monday after surging more than 7% last week, buoyed by an unexpected weakening in the US labor market that prompted traders to scale back expectations for an imminent Federal Reserve rate hike. Data released Friday showed the US economy unexpectedly shed 23,000 jobs in July, following a downwardly revised gain of 20,000 in June and sharply missing forecasts for an 80,000 increase. Markets now assign roughly a 44% probability to a 25 basis point rate hike in September, down from 67% a week earlier. Gold also maintained its gains despite a rise in oil prices, as uncertainty continued to surround efforts to reopen the Strait of Hormuz. Iran said talks with Oman were close to producing an agreement but denied holding direct negotiations with the US, despite Washington’s assertions that a deal was near.