Gold experienced an increase on Friday, positioning itself for its first weekly gain in five weeks, as investors moderated their expectations regarding Federal Reserve interest rate hikes in light of softer-than-anticipated U.S. jobs data. Spot gold increased by 0.5% to $4,144.83 per ounce, reaching its highest level since June 23. U.S. gold futures for August delivery rose by 0.8% to $4,157.50. Bullion was poised for a weekly increase of 1.2%, marking its first such gain since May 25, as disappointing nonfarm payrolls and private payrolls figures alleviated fears regarding inflation and the persistence of elevated interest rates.

Nonfarm payrolls rose by 57,000 jobs last month, according to the Labour Department’s Bureau of Labour Statistics. Economists had anticipated an increase in payrolls of 110,000. Traders are currently assigning approximately a 54% probability of a rate hike in September, a decrease from the previous 66% prior to the data release, as indicated by the CME FedWatch Tool. San Francisco Federal Reserve President Mary Daly stated on Thursday that U.S. monetary policy is “slightly restrictive.” However, with “exceedingly strong” investment growth in AI-related technology and a stable labour market, the next steps for the Fed remain uncertain.

The World Gold Council reported that central banks resumed purchasing in May, with the latest data indicating a net increase of 41 tonnes in official gold reserves for the month. Spot silver rose 0.5% to $61.28 per ounce, platinum gained 1.1% to $1,634.30, and palladium inched up 0.2% to $1,270.25. All three metals were on track for weekly gains.