Aug 1 (Reuters) - Gold prices rose almost 2%, hitting a one-week high, on Friday after weaker-than-expected U.S. payrolls data boosted Federal Reserve rate cut expectations and fresh tariff announcements spurred safe-haven demand.
Spot gold climbed 1.9% to $3,351.61 per ounce, as of 0931 a.m. ET (13:31 GMT), reaching its highest level since July 25. Bullion was up 0.3% so far this week.
U.S. gold futures rose 1.7% to $3,405.20.
"Payrolls numbers came in at below expectations, but a little higher than the market was printing. So, this gives a better probability that the Federal Reserve will cut (rates) later in the year," said Bart Melek, head of commodity strategies at TD Securities.
"We've got a situation where we have inflationary pressures continuing from tariffs and wages, yet job numbers are disappointing. So in that situation, if the Fed cuts (rates), that's going to have material impact on gold in a positive way."
Gold, a non-yielding asset, tends to perform well in a low-interest-rate environment.
U.S. job growth slowed more than expected in July, with nonfarm payrolls increasing by 73,000 jobs last month, after rising by a downwardly revised 14,000 in June, the Labor Department's Bureau of Labor Statistics said.
Market participants are now anticipating two rate cuts by year-end, beginning in September.
Earlier this week, the U.S. central bank left interest rates unchanged in 4.25%-4.50% range, with Fed Chair Jerome Powell saying it's too soon to say whether the central bank will cut its interest rate target in September.
On the trade front, Trump's latest wave of tariffs on exports from dozens of trading partners, including Canada, Brazil, India and Taiwan, sent global markets tumbling as countries pushed for talks to clinch better deals.
Safe-haven gold thrives during economic and geopolitical turmoil.
Spot silver was up 1.1% to $37.14 per ounce, platinum added 0.6% to $1,296.58 and palladium gained 2.3% at $1,217.91.
Reporting by Sarah Qureshi in Bengaluru; Editing by Vijay Kishore
