Precious Metals Rally on Revised Fed Outlook

Gold and silver prices rose as a weaker-than-expected US jobs report led investors to scale back expectations for further Federal Reserve interest rate hikes. Gold climbed over 1% while silver extended its weekly gains to over 5.5%, reclaiming the $60 per ounce level amid broad US Dollar weakness.

US Dollar Weakens on Soft Labor Data

The US Dollar declined against several major currencies after the soft Nonfarm Payrolls data fueled doubts about a potential September rate hike from the Federal Reserve. The British Pound and Swiss Franc recorded weekly gains against the greenback, though the Euro's advance was more measured as traders also weighed ECB policy and regional election risks. Market activity was somewhat subdued due to the US Independence Day holiday, allowing the dollar to stabilize against the Japanese Yen after an initial drop.

Asian Currencies Supported by Local Economic Strength

In Asia, regional currencies found support from positive domestic economic indicators. The Chinese Yuan strengthened following better-than-expected PMI data, which pointed to steady growth and robust exports. The Singapore Dollar remained in a consolidating range, underpinned by a constructive growth outlook and strong manufacturing data.

Energy and Industrial Commodities React to Market Drivers

In other commodity markets, West Texas Intermediate (WTI) crude oil prices advanced, supported by the weaker US Dollar and lingering geopolitical tensions in the Middle East. Meanwhile, the copper market is focused on potential supply constraints from Chile and the risk of a proposed US import tariff on refined copper.