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Gold rallies after weak US payrolls dent dollar and Treasury yields
XAU/USD is around $4,368, marking its highest level since June 17, and is on track for more than an 8% weekly gain.
Gold prices extended their recovery on Friday after weaker-than-expected US hiring data pressured the US dollar and reduced Treasury yield pressure, according to FXStreet.
The US economy lost 23K jobs in July versus expectations for an 80K increase, though the unemployment rate fell to 4.1% from 4.2%. The dollar index (DXY) was around 99.45, down nearly 0.47% on the day, while the 10-year US Treasury yield stood near 4.60%, roughly eight basis points below its intraday high of 4.68%.
Gold, quoted as XAU/USD, traded around $4,368, its highest level since June 17, and was heading for its strongest weekly rise since January. It had already gained more than 8% so far after breaking above the prior month’s $4,000 to $4,200 range on Wednesday.
The rally followed earlier optimism that the Strait of Hormuz could reopen sooner, with Iran and Oman reportedly moving closer to an agreement on a proposed shipping route, which also pushed oil prices sharply lower earlier in the week. Even so, FXStreet noted energy-related inflation risks remain tied to geopolitical uncertainties, with further reporting that Iran struck what it described as hostile targets in the strait.
Latest closeGold $4,292.00 ▲1.1%|Dollar index 99.98 ▲0.3%