Last Updated on July 3, 2026 by Deon
Gold prices went up on Friday because the US labor market data was not as good as people thought it would be. This made people think that the Federal Reserve might not raise interest rates again. The bad news about jobs made the US dollar and Treasury yields go down which is good for gold.
The price of gold has been going up and down for a while now. This time it made people feel better about buying gold again. They think gold is a thing to invest in when they are not sure about what is going to happen with the US economy.
Weak US Jobs Report Fuels Gold Buying
The main reason gold prices went up was because of the US employment report for June. The report said that 57,000 jobs were added, which is a lot less than people thought it would be. The report also said that the numbers for the months were not as good as they thought so it looks like fewer people are getting hired.
Even though the unemployment rate went down to 4.2% it was not because more people got jobs it was because fewer people were looking for jobs. This made people think that the Federal Reserve might not raise interest rates and that made them want to buy gold.
Fed Rate Expectations Shift in Golds Favor
What the Federal Reserve does with interest rates is very important for gold prices. Before the jobs report people thought the Federal Reserve might raise interest rates again this year.. After the report people do not think that will happen anymore.
When interest rates are low it is good for gold because gold does not pay interest like investments do. Also when bond yields are low it makes gold look more attractive.. When the US dollar is weak it makes gold cheaper for people in other countries to buy.
All these things together made the price of gold go up on Friday.
US Dollar Weakness Supports Bullion
The US Dollar Index went down a lot after the jobs report. This made gold more affordable for people who use currencies. It also made people think that the Federal Reserve might not raise interest rates again which is good for gold.
Treasury Yields Fall Alongside the Dollar
The yield on US Treasury bonds also went down after the jobs report. When yields are low it makes gold look more attractive because people can get money from investing in gold than from investing in bonds.
The combination of a dollar and low yields made it a good time for gold prices to go up.
Technical Outlook for Gold
From a point of view gold is doing well. It went above the $4,100 level, which’s a big deal. If it stays above that level it could keep going up. The next goal is to get to $4,200.
If gold goes down it has some support at $4,100, $4,050 and $4,000. As long as it stays above those levels people will keep buying gold.
Safe-Haven Demand Remains Strong
People are still buying gold because they are worried about what’s going on in the world. Central banks are also buying gold to diversify their investments.. With all the uncertainty in the world people think gold is a safe thing to invest in.
What Could Move Gold Next?
There are a things that could make gold prices go up or down. One thing is the inflation data. If inflation is not as high as people thought it could make the Federal Reserve less likely to raise interest rates.
Another thing is what the Federal Reserve officials say. If they say something that makes people think they will raise interest rates it could make gold prices go down.
Finally if the economy starts to slow down it could make people want to buy more gold.
Market Outlook
Gold prices are going up because people think the Federal Reserve will not raise interest rates again. The weak labor market and low yields are also helping gold. If the economy stays slow gold prices could keep going up.
If inflation goes up or the economy starts to do better it could make the Federal Reserve raise interest rates again and that would make gold prices go down.
Gold prices went up because the US jobs data was not good. The weak labor market and low yields are making people want to buy gold. Long as the economy stays slow gold prices will likely keep going up. People will be watching the inflation data and what the Federal Reserve says to see what will happen next with gold prices. Gold prices are going up. People are buying gold because they think it is a safe thing to invest in. Gold is a metal that people like to buy when they are not sure, about what is going to happen with the economy.
