Gold surged to a record high near US$3,600 per ounce on Friday, as speculation mounted that the US Federal Reserve could deliver a significant interest rate cut at its next meeting, following weaker-than-expected US job growth in August, according to Reuters.

Investors responded to the jobs data by doubling down on bets that the Fed might cut rates by as much as 50 basis points, a move that sent Treasury yields tumbling and the US dollar lower, while boosting gold’s appeal.

Nonfarm payrolls increased by only 22,000 jobs in August, missing forecasts and marking a slowdown from July’s upwardly revised 79,000 gain, as reported by Reuters.

The S&P 500 and Dow Jones Industrial Average both set new records in early trading before retreating, while the Nasdaq finished unchanged.

The bond market reacted sharply, with the two-year Treasury yield falling to 3.53 percent and the 10-year yield dropping to 4.09 percent, as per Reuters.

The US dollar index declined 0.5 percent, while the euro strengthened.

Art Hogan of B Riley Wealth Management stated, “This number today puts a 50-basis-point rate cut at the next meeting back on the table. More significantly, I think 75-basis-point before the end of the year is now pretty much of a lock,” as quoted by Reuters.

Olu Sonola at Fitch Ratings added, “A weaker-than-expected jobs report all but seals a 25-basis-point rate cut later this month.”

Canadian markets moved in contrast to the US, with the S&P/TSX composite index rising by over 130 points, buoyed by strength in the basic materials sector, as reported by BNN Bloomberg.

Oil prices declined for a third day, with Brent crude settling 2.2 percent lower at $65.50 per barrel and US crude down 2.5 percent to $61.87, ahead of an OPEC meeting, according to Reuters.

In global markets, European and Asian equities showed mixed results.

The STOXX 600 was down 0.2 percent, while Japan’s Nikkei 225 rallied 1 percent after data showed earnings growth for Japanese workers, as reported by Reuters.