US job cuts send gold up 3% to two-month high

Gold surged over 3% to $4,371.93 per ounce, its highest since mid-June, after an unexpected contraction in the US labor market. US employers cut jobs in July, and hiring for the previous two months was revised downward, indicating a weaker labor market than expected. The disappointing data eased fears that the Federal Reserve might soon raise interest rates, a move that would hinder gold. Gold's rise as a safe-haven asset reflects investor reaction to weak signals, with the metal's trajectory now hinging on the Fed's likely next policy decisions.