Gold Surges to Seven-Week High on Weaker Dollar and Falling Yields

The price of gold has surged to a seven-week high at $4,265 as of Thursday, driven by a weakening US dollar and falling Treasury yields. The U.S. Non-Farm Payrolls report on Friday is expected to be a determining factor for gold's further upward rally towards $4,334.

The Federal Reserve's decision to keep interest rates unchanged in July has reduced expectations for additional rate hikes, making the US dollar less attractive and raising demand for gold. Central banks have also increased their purchases of gold by 62% compared to last year, supporting long-term growth.

Technical analysis indicates that gold's bullish trend will continue as long as it remains above key support levels. Traders are closely monitoring the upcoming Non-Farm Payrolls report, which could influence gold's potential rally towards $4,334.