Gold Prices Reach Two-Month High Amid Central Bank Buying

The price of gold has reached its highest level in two months, surpassing $4,400 an ounce and settling at $4,443.70.

This rally follows a 30-day period where gold gained 10.86 percent, with the precious metal now facing its most significant challenge yet: upcoming US inflation reports.

The catalyst for this surge in gold prices was a labor market surprise from Washington, where the Bureau of Labor Statistics reported a loss of 23,000 nonfarm payrolls for July, missing analysts' expectations of an 80,000 gain.

As a result, traders are increasingly pricing in a Federal Reserve pause at its September meeting, reducing the opportunity cost of holding gold and driving demand.

China's central bank has also been buying gold at a record clip, with 20 tonnes added to its reserves in July, while institutional investors in China are using gold as a hedge against technology market turbulence.