Spot gold rose to its highest level since the end of June on Wednesday, driven by weaker-than-expected employment data and growing market expectations that the Strait of Hormuz could soon reopen to shipping. The precious metal touched an intraday high of $4,295 per ounce before paring gains, trading near $4,268 per ounce on Thursday, while gold futures were last quoted at $4,329 per ounce.
Gold has now advanced for four consecutive sessions, approaching a seven-week high, as multiple headwinds that have weighed on prices since the outbreak of the Middle East conflict begin to ease slightly. Payroll services firm ADP reported Wednesday that U.S. private-sector hiring slowed significantly in July, with most new jobs concentrated in the healthcare sector. The soft ADP employment data reduces the likelihood of a Federal Reserve rate hike in September. Since gold generates no interest income, lower rate expectations provide support for the yellow metal.
Meanwhile, a joint U.S.-Japan intervention in the foreign exchange market over the weekend helped push the dollar modestly lower. Market sources indicate that Japan sold nearly $60 billion in U.S. Treasury bonds to support the yen, while the U.S. raised funds for its yen purchases by selling euros. The dollar index, which tracks the greenback against a basket of major currencies, slipped to a six-week low of around 99.78. During the current conflict, gold has typically moved inversely to both oil prices and the U.S. dollar.
Another key catalyst boosting gold prices is the easing of tensions in the Middle East, as negotiations progress to reopen the Strait of Hormuz. Iran stated on Wednesday that an agreement with Oman to resume shipping through the vital waterway is close to being finalized, lifting overall risk asset sentiment.
Despite the recent rebound, gold prices remain more than 20% below the peak of $5,589 per ounce reached at the end of January. The metal has faced sustained pressure over the past six months, following a sharp rally that began in 2025 and hit an all-time high in early 2026 before entering a prolonged correction.