XAU/USD rallies above $2,650 on weak US jobs data, Fed rate cut bets

Gold prices surged 1.2% to $2,658 following disappointing US employment data that bolstered Federal Reserve rate cut expectations. The US Non-Farm Payrolls report showed only 142K jobs added versus 185K expected, while unemployment ticked up to 4.3%. This weakness prompted markets to price in a 75% probability of a 25-basis-point Fed rate cut at the September meeting. EUR/USD gained 0.4% to 1.0580 as dollar weakness spread across major pairs, while GBP/USD advanced to 1.3120. The Dollar Index fell 0.6% to 101.20, marking its lowest level in three weeks. Gold's rally accelerated through key resistance at $2,640, with momentum indicators signaling further upside potential toward $2,680. Lower US yields make non-yielding gold more attractive, supporting the precious metal's safe-haven appeal amid economic uncertainty.