Gold Surges Past $4,400 on Weak Jobs Data and Central Bank Buying

The price of gold continued its upward trend on Monday, reaching $4,477.20 as investors responded to the release of disappointing US employment data.

The July jobs report showed a contraction of 23,000 jobs, well short of forecasts, and sent Treasury yields lower and the dollar index down by 0.2-0.3 percent.

This shift in expectations has reduced the likelihood of a September rate hike to 31 percent from 51 percent just a month ago, easing competitive pressure on gold and its appeal as a store of value.

Central banks, however, remain major buyers of gold, purchasing a record 288.9 tonnes in the second quarter, with Poland adding 51 tonnes and China increasing its holdings by nearly 15 tonnes in June.