Gold Eyes $5,000 as UBS Backs Rally After Jobs Data Lifts Prices
TLDR
- UBS forecasts gold will hit $5,000 per ounce in the first half of 2027
- Gold jumped 2.3% on Friday after the US economy lost 23,000 jobs in July
- Gold gained more than 7% for the week, its best weekly gain since January
- Chinese investors and ETF inflows have been key drivers of the recent rally
- The People’s Bank of China has bought gold for 21 straight months
Gold prices surged on Friday after a weak US jobs report cooled expectations of a Federal Reserve rate hike. The precious metal climbed 2.3% to $4,340.70 per ounce, its highest settlement since June 17.
The Bureau of Labor Statistics reported the economy lost 23,000 jobs in July. That was well below the expected gain of 85,000 jobs.
The report also revised earlier months downward. June’s job gains were cut to 20,000 from an initial estimate of 57,000, and May’s figure dropped to 63,000 from 129,000.
Traders reacted quickly to the data. The probability of a September rate hike fell to 42% from 57% before the report, according to CME Group’s FedWatch tool.
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