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The Federal Reserve previously signaled it would raise rates soon if the employment situation improved and economic data remained consistent with a pickup in growth.

Related: Low-Rate Environment Will Help Support Gold ETFs

With a Fed rate hike in doubt, precious metals-related assets surged Friday. An extended low-rate environment would help support gold, which pays its holders nothing and struggles to compete with yield-bearing assets if borrowing costs rise, as a more stable store of wealth, and a depressed U.S. dollar would also make USD-denominated gold cheaper for foreign buyers.

“There’s been a lot of bullish money on the sidelines … that has been worried about the Fed,” Bob Haberkorn, senior market strategist at RJO Futures, told the Wall Street Journal. “They’ve been lying in the weeds and waiting. It feels like it’s coming out this morning.”

For more information on the gold market, visit our gold category.

VanEck Vectors Gold Miners ETF

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