Gold prices moved closer on Friday to the $4,200 per ounce threshold, extending their gains from the previous day after U.S. employment figures came in below expectations.
The American economy added only 57,000 jobs in June, versus 110,000 expected, the weakest level in four months. The unemployment rate stood at 4.2%.
These data led markets to scale back their expectations for Fed rate hikes. Fed funds futures are now pricing in around a 50% probability of a rate increase in September, down from about 67% before the jobs report was released.
Gold also benefited from a retreat in oil prices and a cooling of inflation fears, while commercial shipping traffic through the Strait of Hormuz continues to recover amid progress in talks between Washington and Tehran.
