At the close of trading on 1/8, the spot price of gold rose 73 USD to 3,361 USD per ounce. This marks the highest price in a week.

Global gold prices surged on 1/8. Chart: Kitco

The market rallied after the US released a weaker-than-expected July jobs report. According to the US Department of Labor, the world's largest economy added only 73,000 new jobs. The previous month's figure was also revised down to 14,000.

"These figures are weaker than expected, reinforcing expectations that the Federal Reserve (Fed) will cut interest rates this year," said Bart Melek, Head of Commodity Strategy at TD Securities. Gold, as a non-yielding asset, tends to appreciate in a low-interest-rate environment.

The market currently anticipates two Fed rate cuts by the end of the year, starting in September. Earlier this week, the Fed announced that it would hold its benchmark interest rate steady at 4.25-4.5%. Fed Chair Jerome Powell stated that "no decisions have been made for September."

Another factor driving gold prices higher is a series of new import tariff announcements from US President Donald Trump, prompting investors to seek refuge in gold. The new retaliatory tariffs against US trading partners will take effect on 7/8.

"We have inflationary pressure from tariffs and rising wages, but new jobs are disappointing. In this situation, if the Fed cuts rates, the impact on gold will be very positive," Melek added.

In addition to gold, other precious metals also rose in the first trading session of August. Silver increased 0.4% to 36.8 USD per ounce. Platinum rose 1.2% to 1,304 USD. Palladium gained 1.4%, closing at 1,208 USD. However, all three metals lost value over the week.

Ha Thu (according to Reuters, Kitco)