Gold rises on weak US jobs data, rate-cut hopes
Gold prices rose after weak US jobs data fuelled July rate-cut hopes, but the metal remained on track for its first weekly fall in five weeks
Global gold prices moved higher overnight following the release of US employment data, although they remained on track to post their first decline in five weeks. As hiring contracted, markets increased expectations that the Federal Reserve would cut interest rates in July.
Reuters reported that gold prices rose on Friday (March 6, 2026) after weaker US employment data kept hopes alive for a US Federal Reserve rate cut. However, bullion was still set for its first weekly fall in five weeks, as a stronger dollar limited the upside.
Spot gold rose 1.4% to $5,149.14 per ounce at 1:31 p.m. US Eastern Time (18:31 GMT), but was down 2.4% for the week. US gold futures for April delivery closed 1.6% higher at $5,158.70.
“An astonishingly weak employment report, showing a huge loss of private-sector jobs along with higher wages, suggests stagflationary conditions. Let’s see whether that will be enough to help gold recover from this disappointing week,” said Tai Wong, an independent metals trader.
Data showed that non-farm payrolls fell by 92,000 jobs last month, compared with economists’ expectations for an increase of 59,000. Meanwhile, the unemployment rate rose to 4.4%.
On the geopolitical front, Israel launched heavy strikes on Beirut after ordering residents to evacuate all southern suburbs of the Lebanese capital, marking a major expansion of the war with Iran that Israel began last week alongside the United States.
The US dollar index was on course for its biggest rise in more than a year, as the escalating conflict in the Middle East boosted demand for safe-haven assets. That made dollar-priced gold more expensive for overseas buyers, adding pressure to gold prices despite the metal’s reputation as a safe haven.
“There are algorithmic sellers programmed to sell automatically when the dollar strengthens, and that is part of the reason precious metals have underperformed expectations this week,” said Hugo Pascal, a precious metals trader at InProved.
The Federal Reserve’s policy committee is due to meet on March 18, and it is widely expected to keep interest rates unchanged. Markets are anticipating the first rate cut in July, according to CME’s FedWatch tool.
Gold is often seen as a long-term hedge against inflation, but it generally performs well in a low-interest-rate environment.
Gold prices have risen by more than 18% this year. As the conflict involving Iran has intensified, crude oil prices are heading for their biggest weekly gain since Russia’s invasion of Ukraine in February 2022, reviving inflation concerns.
Spot silver rose 2.6% to $84.30 per ounce. Spot platinum gained 0.5% to $2,131.50, while palladium fell 1.1% to $1,646.84. All of the metals were on track to decline for the week.
