A softer US jobs report and yen intervention talks weigh on the dollar, lifting gold to its highest level since late June.
Gold prices climbed above $4000 for the first time since June 23, recovering from a prolonged slump tied to a strong US dollar and waning safe-haven demand. The rally follows a weaker-than-expected non-farm payrolls report, easing concerns over US economic resilience despite $700 billion in AI-driven capital expenditure this year.
The metal had repeatedly tested the $4000 level in recent weeks but failed to sustain gains, raising questions about buyer conviction. Broader dollar strength, fueled by AI investment inflows, has pressured gold, though today’s move suggests a potential shift as USD/JPY drops 160 pips amid speculation of Japanese intervention.
Technical resistance near $4400 remains a key hurdle, but sustained dollar weakness—driven by potential capital outflows from the US—could support further gains. Analysts caution that the AI boom’s dominance in US markets may limit downside for the dollar.