Weaker Jobs Data Drags Dollar Down, Gold Clings to $4,000 Support
Softer-than-expected US labor market figures weakened the dollar and eased fears of prolonged Fed tightening, keeping gold above the key $4,000 level as hedge funds boosted bullish bets to a six-month high.
The dollar declined after weaker jobs data reduced the likelihood that the Federal Reserve will need to maintain high interest rates for an extended period. This shift in rate expectations provided immediate relief to gold.
Gold held firmly above the critical $4,000 support level. Hedge funds responded by raising their long positions to the highest in more than six months, signaling renewed bullish sentiment.
Asian buying provided additional support. Chinese gold ETFs continued to see inflows, and the People’s Bank of China added 640,000 ounces to its reserves in July—marking the 21st consecutive month of accumulation.
Source: First Squawk