• Gold price leaped over 1% to $2,385, spurred by mixed US NFP data and heightened Fed rate cut speculation.
• June NFP surpasses forecasts, yet revisions for April and May indicate an accelerating labor market cooldown.
• US Dollar Index (DXY) declines 0.16% to 104.95; 10-year Treasury yield drops more than six basis points to 4.284%.

The Gold price rallied during the mid-North American session following the release of June’s US Nonfarm Payrolls (NFP) report, which exceeded forecasts, but two previous months’ downward revisions hinted that the labor market is cooling faster than the figures show. Therefore, traders bet that the Federal Reserve (Fed) will cut rates in September, increasing a headwind for the Greenback and a tailwind for the yellow metal.

The XAU/USD trades at $2,385 and registers gains of over 1% after bouncing off daily lows of $2,349, sponsored in part by a weaker US Dollar, which remains undermined by lower US Treasury bond yields.

The US Dollar Index (DX) is losing 0.16%, down to 104.95, while the US 10-year benchmark yield tumbles more than six basis points (bps) to 4.284%.

US NFPs for June were positive, but the data from April and May were downwardly revised, hinting that the economy added 111,000 fewer jobs than reported in those two months. Consequently, the Unemployment Rate rose a tenth in June, above consensus.

Other data from the US Bureau of Labor Statistics (BLS) revealed that Average Hourly Earnings (AHE) remained flat MoM but declined yearly.

Aside from this, geopolitics continued to play an important role in the golden metal’s path. Israeli Prime Minister Benjamin Netanyahu sent a delegation to continue negotiations on hostages and reiterated the war wouldn’t end until Israel achieves all its objectives. Meanwhile, a Hamas leader said they’re waiting for a positive response from Israel to start negotiations on the details of a deal, according to CNN.