Gold Surges to Two-Month High Amid Weaker US Employment Data

Gold prices have hit a two-month high, reaching US$4,400 an ounce and staying near this level despite a stronger US dollar, higher Treasury yields, and rising oil prices.

This combination of factors would normally weigh on gold, but weaker US employment data, renewed safe-haven demand, and continued Chinese central-bank buying have brought buyers back after the metal's slide towards US$4,000 in June.

The immediate test for Australian traders is the upcoming US inflation data. A softer reading could strengthen the case that gold can break through the US$4,460 to US$4,500 resistance zone.