Gold price hits highest level since June on weak payrolls data and Hormuz deal hopes
Gold prices reached a seven-week high due to weak U.S. payroll data and potential progress in reopening the Strait of Hormuz. The precious metal is benefiting from a weakening dollar and reduced expectations for aggressive interest rate hikes by the Federal Reserve.
Why it matters
Gold's price movement serves as a key indicator of market sentiment regarding global economic stability and geopolitical tensions in the Middle East.
Gold rose to its highest level since late June on Wednesday, amid weaker-than-expected payrolls data and hopes for a reopening of the Strait of Hormuz.
Spot gold rose as high as $4,295 per ounce before paring gains to settle around $4,268 per ounce on Thursday. Gold futures were last seen trading at $4,329 per ounce.
The precious metal enters its fourth consecutive winning session and hovers near a seven-week high as some of the headwinds that have held it back since the war began ease off slightly.
Hiring at private companies slowed considerably in July, with most of the job growth coming from healthcare, payrolls processing firm ADP reported Wednesday.
A weaker ADP report reduces the likelihood of a Fed interest rate hike in September, which would provide some relief for non-yielding gold.
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