Gold price hits highest level since June on weak payrolls data and Hormuz deal hopes

• Weak ADP jobs report reduces likelihood of a Fed interest rate hike in September, benefiting non-yielding gold as an investment
• Dollar index hovering near 6-week lows around 99.78 following U.S.-Japan intervention in the yen, with gold trading inversely to the greenback during the conflict
• Iran signals a deal with Oman to reopen the Strait of Hormuz is close, easing Middle East tensions and supporting risk assets including gold

Market Summary: Gold Hits Seven-Week High on Economic and Geopolitical Factors

Key Price Movements:

Gold reached its highest level since late June, trading at $4,329 per ounce in futures markets after spot prices peaked at $4,295 before settling around $4,268 per ounce on Thursday. The precious metal is now in its fourth consecutive winning session, hovering near seven-week highs. However, gold remains approximately 20% below its all-time high of $5,589 per ounce achieved in late January 2026.

Primary Catalysts:

1. Weak Employment Data: A weaker-than-expected ADP private payrolls report for July showed considerable hiring slowdown, with most growth concentrated in healthcare. This reduced expectations for a Federal Reserve interest rate hike in September, providing support for non-yielding gold.

1. Currency Movements: The dollar index dropped to six-week lows around 99.78, supported by joint U.S.-Japan intervention in currency markets. Tokyo reportedly sold nearly $60 billion in Treasuries to strengthen the yen, contributing to dollar weakness that typically benefits gold prices.

1. Geopolitical Developments: Easing Middle East tensions boosted sentiment, with Iran indicating a near agreement with Oman to reopen the Strait of Hormuz—a critical global shipping waterway.

Market Implications:

Gold has traded inversely to both oil prices and the U.S. dollar during the ongoing conflict period. The combination of dovish Fed expectations, dollar weakness, and reduced geopolitical risk is providing relief for the precious metal after six challenging months of underperformance relative to its 2026 peak.