Gold rises to a seven-week high at $4,322
Gold extended its recovery on Friday, driven by technical buying and a cautious market sentiment. The precious metal climbed to a fresh seven-week high, trading around $4,322.
The advance was initially fuelled by optimism over a potential reopening of the Strait of Hormuz, which pushed oil prices lower and eased concerns over energy-driven inflation. This, in turn, weighed on the US Dollar and US Treasury yields, as traders scaled back bets on Fed interest rate hikes.
The upcoming US Nonfarm Payrolls report is expected to add 80K jobs in July, following a 57K increase in June. The employment data could shift expectations for a rate hike at the September meeting, currently seen at around 55% probability.