Gold Seeks Strongest Weekly Gain Since January Amid Hormuz Tensions

Gold prices rose in European trading on Friday, resuming gains after a brief pause and approaching a seven-week high. This puts gold on track for its strongest weekly advance since January amid a sharp improvement in investment demand.

Markets are awaiting further details on negotiations between the United States and Iran, mediated by Oman, aimed at reaching an agreement to reopen the Strait of Hormuz to international shipping.

The weak US labor market data have reduced expectations that the Federal Reserve will raise interest rates in September. Investors now await the July employment report due later today, which includes key indicators on the US labor market, particularly nonfarm payrolls for July, alongside the unemployment rate and average hourly earnings.