09:30 AM EDT, 08/02/2024 (MT Newswires) -- Gold traded at a record high early on Friday as the dollar and treasury yields tumbled after the United States added far fewer jobs in July than expected, sending investors to the metal as a safe haven.

Gold for December delivery was last seen up US$40.20 to US$2,521.20 per ounce, topping the previous record of US$2,505.40 set on July 18.

The U.S. Bureau of Labor Statistics on Friday said the country added 114,000 jobs last month. That was well under expectations expectations for a rise of 185,000, according to Marketwatch. The unemployment rate rose to 4.3% from 4.1%.

The data is the latest to show the U.S. economy is slowing due to high interest rates. While the Federal Reserve declined to cut rates at its policy committee meeting this week, Fed chair Jerome Powell said a cycle of rate cuts could begin in September. However the market is now pushing for a 50 basis point cut, with the CME Fedwatch tool now showing a 34.5% probability for a 25 basis point cut and a 65.5% expectation for the larger drop in interest rates.

Gold is "heading for a weekly gain of more than 3%, supported by US economic data softness driving down bond yields while cementing the prospect for a September rate cut," Saxo Bank noted.

The dollar dropped sharply following the employment report, with the ICE dollar index last seen down 0.93 points to 103.49.

Treasury yields also tumbled, bullish for gold since it offers no interest. The U.S. two-year note was last seen paying 3.991%, down 16.7 basis points, while the yield on the 10-year note was down 11.1 basis points to 3.871%