Gold on track for first weekly gain in five weeks
By Michele Maatouk
Date: Friday 03 Jul 2026
(Sharecast News) - Gold prices were on course to post their first weekly rise in five months on Friday after a weaker-than-expected non-farm payrolls report led investors to scale back rate hike expectations.
At 1240 BST, spot gold was trading up 1.5% at $4,184.56 an ounce and looking at a 2.3% weekly increase.
Dan Coatsworth, head of markets at AJ Bell, said: "The precious metal had a disappointing time in the first half of the year and recently dipped below $4,000 as investors were tempted away by attractive yields on bonds and lapped up stocks as the AI boom carried on. Gold has today rebounded, trading just below $4,200 per ounce and taking the likes of Fresnillo and other gold miners along for the ride.
"Yesterday's US jobs data pointed to a softer labour market which has raised hopes that the Fed won't put up interest rates. The shift in rate expectations led to a drop in US Treasury yields, meaning the opportunity on fixed income was slightly diminished and thereby dampening one of the drivers that's taken money away from gold this year. Investors might have seen this market shift and decided it was time to add back some more gold."
Patrick Munnelly at Tickmill Group said precious metals are trading as the mirror image of the Fed premium.
"When yields soften and the dollar loses momentum, gold quickly finds sponsorship," he said. "The move also reflects investor appetite for hedges in a market where equities are rebounding but macro conviction remains thin."
Figures released on Thursday showed that US non-farm payrolls rose 57,000 in June, coming in below expectations for a 110,000 to 115,000 jump and down from 129,000 added in May. Meanwhile, the readings for May and April were revised lower.
Looking ahead, Eric Chia, financial markets strategist at Exness, said market participants will be closely monitoring the next steps in peace talks between the US and Iran.
"Hope for progress could place additional selling pressure on oil prices and ease inflation concerns, which could benefit gold," he said. "However, any hurdles in the process could push gold to the downside. Additionally, June's services PMI, due next week, and any further Fed commentary will determine whether markets keep unwinding rate-hike bets or revert to the hawkish repricing that dragged gold to its recent low."
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