Gold maintained its upward trajectory on Friday, holding above $4,100 an ounce after surging more than 2% in the prior session. The precious metal benefited from disappointing US employment figures that significantly reduced market expectations for Federal Reserve tightening. With inflation still elevated, investors are pivoting toward safe-haven assets as monetary policy uncertainty grows.

US employers added only 57,000 jobs in June, falling short of the 110,000 forecast and marking the weakest gain in four months. The unemployment rate held steady at 4.2%, while private-sector hiring also lagged expectations. These figures suggest economic momentum is slowing, potentially giving the Fed room to pause rate increases while it assesses incoming data.

Fed funds futures now price in approximately a 50% probability of a September rate hike, down sharply from 67% before the employment report. Fed Chair Kevin Warsh noted that inflation expectations are moderating, reinforcing the central bank's focus on price stability. Gold also drew support from declining oil prices and easing inflation pressures.

Progress in US-Iran diplomatic talks has stabilized shipping through the Strait of Hormuz, reducing geopolitical risk and supporting the commodity rally. The combination of softer US data and easing Middle East tensions creates a favorable backdrop for gold's continued ascent as investors seek protection against potential economic slowdown.