Gold extends its rally beyond $4,100 following disappointing US Nonfarm Payrolls data.

• Gold price inches higher toward $4,125 during Friday’s Asian trading session.
• Weaker-than-expected US Nonfarm Payrolls, which rose by just 57,000 in June, supported the precious metal.
• Meanwhile, geopolitical tensions persisted after the latest round of indirect US-Iran talks ended Wednesday without meaningful progress toward a lasting peace agreement.

Gold price (XAU/USD) advanced to around $4,125 during Friday’s early Asian session, extending its upward momentum after softer-than-expected US Nonfarm Payrolls (NFP) data dampened expectations for further Federal Reserve (Fed) rate hikes this year.

According to data released by the US Bureau of Labor Statistics (BLS) on Thursday, the US economy added just 57,000 jobs in June, well below market forecasts of 110,000. Meanwhile, the Unemployment Rate eased to 4.2% from 4.3% in May. The report followed Wednesday’s weaker US private payrolls figures, which also pointed to slowing labor market momentum.

“The weaker jobs data reduces the likelihood of additional rate hikes later this year. Gold typically performs better in a lower interest rate environment,” said David Meger, director of metals trading at High Ridge Futures. He added that the disappointing employment data triggered a strong rally in the gold market.

At the same time, geopolitical tensions remained elevated after indirect talks between the US and Iran ended on Wednesday without any meaningful progress toward a lasting peace agreement, according to Reuters. Ongoing uncertainty in the Middle East could fuel inflation concerns, potentially reviving expectations for tighter monetary policy and limiting gains in non-yielding assets such as gold.