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Gold extends rally past $4,400 to highest since June 5
Gold is moving higher as a weak US jobs report cools expectations for Fed rate hikes, while investors also weigh inflation risks tied to volatile crude amid Middle East shipping disruptions.
Gold prices rose for a third straight session, pushing XAU/USD to its highest level since June 5 and moving further above the $4,400 mark during the Asian session, according to FXStreet.
FXStreet said the latest advance was supported by a weak US jobs report released last Friday, which suggested a cooling labor market and reduced the case for the US Federal Reserve to raise interest rates. At the same time, the outlet noted investors remain wary of inflation risks linked to volatile crude oil prices as the Iran war continues.
FXStreet pointed to developments involving Iran and the US, including that US President Donald Trump rejected Iran’s demand for compensation and instead blamed Iran for regional deaths. The outlet also cited Iran ruling out negotiations with Trump until after his term ends on January 20, 2029, and said shipping traffic through the Bab el-Mandeb Strait remains disrupted due to an Iran-backed Houthis blockade affecting Saudi Arabia.
The report added that traders are still pricing at least one Fed rate hike in 2026, which can support elevated US Treasury yields and the US dollar, a headwind for gold. FXStreet said investors may wait for upcoming US inflation data, with the Consumer Price Index and Producer Price Index due on Wednesday and Thursday, respectively, to help guide the next move in the USD and XAU/USD.
Latest closeGold $4,448.60 ▲2.5%|WTI crude $82.30 ▲5.3%