Gold Surges Above $4,300 as US Employment Data and Central Bank Buying Boost Prices

Gold prices have held above $4,300 an ounce for the first time since June, buoyed by weak US employment data and increased Chinese central bank purchases. The metal traded around $4,340 an ounce after jumping almost 7% last week, remaining above its 60-day moving average.

The unexpected loss of 23,000 US jobs in July added to expectations that the Federal Reserve may have less room to raise interest rates even as inflation remains a concern. This has made gold more attractive, given its lack of interest payments compared to other assets.

Hedge funds and money managers increased their bullish bets on bullion last week to the highest level in more than six months, according to Commodity Futures Trading Commission data. China's central bank also boosted its gold reserves in July by the most since October 2023, adding another source of demand for the precious metal.