Gold Prices Soar Above $4,300 as Rate Hike Fears Mount
Gold prices have surged over 1% intraday to briefly cross the $4,300 mark as of the European session on August 7. The precious metal has gained more than 6% this week, its largest weekly gain since January. This strong performance is largely due to concerns about a potential Federal Reserve rate hike in September.
The market is closely watching the July non-farm payrolls report, set to be released at 8:30 a.m. ET on August 7. Economists expect an increase of approximately 80,000 jobs, higher than June's 57,000. However, if job growth falls significantly below expectations, the market may reassess its expectations for a September rate hike.
According to technical analysis, gold has broken through the $4,300 threshold, opening up upside toward the key resistance level of $4,380. If gold remains under pressure below this level, it may test the $4,200 support level on the downside in the short term.