Gold Breaks Above $4,000 as Geopolitics and US Payrolls Come into Focus
Gold prices surged this week, reaching a seven-week high on Thursday and closing in on its strongest weekly advance since January. Spot gold rose about 0.6% to $4,262.39 an ounce in early trade, with US gold futures gaining 0.5% to $4,321.50.
The rally has pushed bullion decisively away from the $4,000 area that anchored its recent consolidation. This rebound partly reflects a reversal in surging energy prices, which had hurt the metal earlier in the Middle East conflict.
However, the geopolitical backdrop remains unstable, and oil could rebound quickly, potentially reviving inflation pressure on bullion. The July US employment report, due at 8:30 am New York time on Friday, will be a crucial test of whether gold's recovery can extend.
Economists expect payrolls to have increased by about 80,000 after a 57,000 rise in June, with unemployment forecast to remain at 4.2%. A weaker jobs report could pull Treasury yields lower and reduce expectations for tighter policy, supporting bullion through lower yields.