Gold Hits Ten-Week High Ahead of Crucial Inflation Report

The price of gold has surged to a ten-week high, reaching $4,485.80 on Wednesday's session, as traders await the release of July's consumer price index report.

This rally follows a weak US jobs report in July, which saw the economy shed 23,000 positions and upended consensus forecasts, forcing a rapid reassessment of the Federal Reserve's tightening path.

The 'jobs shock' has extinguished expectations for further rate hikes, leading to a decline in real yields on ten-year inflation-protected US Treasuries, which had climbed to roughly 2.41 percent since the start of the year.

Gold's current distance of 7.54 percent above its 50-day average underscores the forceful nature of the recent advance, with analysts at XTB eyeing the 200-day moving average near $4,505.80 as the next target.