On Wednesday, gold reached a peak of $4,295 per ounce before settling at approximately $4,268 per ounce, marking its fourth consecutive winning session and nearing a seven-week high. The rise in gold prices follows a report from payroll processing firm ADP indicating a slowdown in hiring at private companies for July, with most job growth occurring in healthcare.
This weaker employment data diminishes the likelihood of an interest rate hike by the Federal Reserve in September, which is generally favorable for gold as it does not yield interest. Additionally, a joint intervention by the U.S. and Japan in the yen market has contributed to a slightly weaker dollar, with the dollar index at around 99.78, close to six-week lows.
Gold has historically traded inversely to both oil prices and the dollar, and the easing of tensions in the Middle East, particularly with Iran nearing a deal with Oman to reopen the Strait of Hormuz, has further bolstered gold prices.
Despite this recent increase, gold remains over 20% below its all-time high of $5,589 per ounce reached earlier in 2026, reflecting the challenges it has faced over the past six months