Gold climbed to a seven-week high after weak U.S. employment data and signs of a possible agreement tied to the Strait of Hormuz. Spot gold briefly reached $4,295 an ounce before easing to around $4,268 on Thursday. It marked a fourth straight day of gains. ADP said U.S. private-sector hiring slowed sharply in July, with most of the new jobs coming from health care. The softer data lowered expectations for a September Federal Reserve rate hike, which supports non-yielding bullion. The article also cited IG analyst Tony Sycamore, who said optimism over a near-finalized Middle East diplomatic breakthrough could weigh on oil prices and reduce the need for central banks to raise rates.
Gold touched $4,295 an ounce before easing
Gold climbed to a seven-week high. According to CNBC, weak U.S. employment data and hopes for a deal related to the Strait of Hormuz pushed spot gold as high as $4,295 an ounce. It later pulled back on Thursday and traded around $4,268.
The move marked a fourth straight day of gains and left bullion near a seven-week high.
Weak ADP data cooled September hike expectations
Payroll processor ADP said on Wednesday that U.S. private-sector hiring slowed sharply in July, with most of the new openings coming from health care. Softer labor data lowered the odds of a September rate hike by the Federal Reserve, a positive backdrop for gold, which does not pay interest.
Hormuz deal hopes added another tailwind
A separate boost came from geopolitics. An agreement between Iran and Oman that could end five months of conflict between Iran and the U.S. would give Tehran control over ships entering the Persian Gulf.
IG market analyst Tony Sycamore said optimism over a Middle East diplomatic breakthrough nearing completion would pressure oil prices, reduce the need for central banks to raise rates, and give gold a clear tailwind.
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