Closing the trading session on 3/7, each ounce of world gold increased by 52 USD to 4,171 USD. Over the entire week, prices rose more than 2%. This marks the first weekly gain for the precious metal in over one month.

Spot world gold price movements over the past month. Chart: Goldprice

The market rallied following a weaker-than-expected jobs report, which reduced the likelihood of the US Federal Reserve (Fed) raising interest rates this year. The US Department of Labor report on 2/4 indicated that the economy added 57,000 new jobs last month, falling short of economists' forecast of 110,000. The unemployment rate remained at 4,2%. An earlier report also showed slower-than-expected growth in private sector jobs in June.

Han Tan, a market analyst at Bybit, suggested this trend would continue as the market reduced its bets on a September Fed rate hike. The CME FedWatch Tool showed investors currently predict a 54% probability of Fed action, down from 66% before the jobs data was released. Lower interest rates reduce the opportunity cost of holding gold.

Additionally, the Dollar Index is on track for its sharpest weekly decline since April. This makes gold less expensive for buyers outside the US.

The World Gold Council (WGC) reported that central banks resumed buying gold in May. Based on the latest published data, official gold reserves saw a net increase of 41 tons that month. Tan believes this group will continue to be a pillar of demand for gold prices in the long term.

In the physical market, gold demand in India decreased this week due to rising prices. Conversely, demand in Trung Quoc improved.

Beyond gold, other metals like silver, platinum, and palladium also continued to rise during the 3/7 session, with increases of 1-2%. All three recorded weekly price gains.

Ha Thu (according to CNBC, Reuters)