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Gold climbs to highest level in nearly seven weeks

Gold rose nearly 3.8% to about $4,232 as the dollar eased and Treasury yields failed to gain, with traders looking ahead to Friday’s Nonfarm Payrolls.

Reported · Written up by our desk · Precious Metals

Gold prices jumped to their highest level in nearly seven weeks, rising about 3.8% on Wednesday as the US dollar weakened and Treasury yields stalled, according to FXStreet.

The XAU/USD pair traded around $4,232, after rebounding from daily lows near $4,065, and it cleared the 50-day simple moving average at roughly $4,161 as the market moved past the $4,200 level.

The US Dollar Index was down about 0.1% to 99.76, while attention turned to Friday’s July Nonfarm Payrolls release, where economists expect job growth of about 80K and an unemployment rate around 4.2%. Earlier data showed the July ADP Employment Change report came in weaker than expected, falling to 44K from 98K versus the 70K forecast.

FXStreet also pointed to policy signals from Federal Reserve officials, with Minneapolis Fed President Neel Kashkari saying it is now appropriate to start gradually raising rates, and Kansas City Fed’s Jeffrey Schmid arguing for strict policy to address inflation. The outlet cited de-escalation in the Gulf as a tailwind, plus comments about a possible agreement related to reopening the Strait of Hormuz as early as Wednesday.

Latest closeGold $4,308.50 ▲5.2%|Dollar index 99.69 ▼0.2%

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