Gold Prices Surge Over 4% on Weak US Jobs Data and Easing Geopolitical Tensions

The gold market witnessed its strongest single-day rally in nearly five months on August 5, 2026, with prices surging over 4% to settle at $4,308 per ounce.

This breakout was driven by a confluence of factors, including a weak US ADP employment report for July, which showed only 44,000 jobs added and sharply repriced Federal Reserve rate hike expectations.

The report's release caused the US Dollar Index to fall by over 1.8% from July 27 to August 5, while yields on US Treasuries also declined.

Geopolitical risk premiums returned following positive statements from former President Trump regarding the potential reopening of the Strait of Hormuz, which handles about 20% of global seaborne oil flows.

The global central banks' net purchased 289 tonnes of gold in the second quarter, a 62% year-over-year surge, with the Bank of Korea resuming purchases after a 13-year hiatus.