- Gold steadied after its biggest weekly gain since January, with traders assessing a surprise contraction in the US jobs market that allayed concerns around an interest-rate hike.
- Bullion was near $4,345 an ounce in early trading, having added more than 7% last week.
- Data published Friday showed US jobs in July while hiring in the prior two months was revised lower, suggesting the labor market is weaker than previously thought.
- Gold futures on Bursa Malaysia Derivatives are expected to extend gains this week, supported by firmer spot gold prices projected to hit between US$4,250 and US$4,350 per troy ounce.
- Spot gold prices rose to US$4,305.69 per troy ounce last week, in tandem with the decline in crude oil prices following reports of the possible reopening of the Strait of Hormuz.
- The World Gold Council reported that demand for gold exchange-traded funds remained encouraging, recording US$3bil net inflows in July, reversing two consecutive months of outflows.
- Uncertainties in the US interest rate direction would put a cap on gold prices, according to Mohd Afzanizam.
- Gold briefly came under pressure last Thursday night as a rebound in oil prices revived inflation concerns, but it recovered swiftly, said Quintex Intel global strategist Stephen Innes.
- Gold has since broken back above US$4,300 per troy ounce, with fiscal concerns, persistent central-bank demand, and strong Asian retail buying providing a firm underlying bid.
Gold prices are poised to extend gains this week, trading near $4,345 an ounce after a significant 7% increase last week. This surge follows a surprise contraction in the US jobs market, which has alleviated fears of imminent interest rate hikes.13
Data released on Friday revealed that US hiring in July was weaker than anticipated, with revisions showing lower employment figures for the previous two months. This suggests a weaker labor market than previously thought, contributing to the bullish sentiment in gold trading.
According to Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, spot gold prices reached $4,305.69 per troy ounce last week, buoyed by declining crude oil prices and a strong demand for gold exchange-traded funds, which saw $3 billion in net inflows during July, reversing two months of outflows.59
Despite the positive outlook, Afzanizam cautioned that uncertainties regarding US interest rates could limit gold's price potential. Stephen Innes, a global strategist at Quintex Intel, noted that gold briefly faced pressure due to rising oil prices but quickly rebounded, supported by ongoing central bank demand and robust retail buying in Asia.
Futures contracts for gold have also shown significant increases, with the August 2026 contract rising to $4,322.90 per troy ounce from $4,067.90 the previous week, indicating strong market momentum.
“The World Gold Council reported US$3 billion net inflows into gold ETFs in July, reversing two consecutive months of outflows. Meanwhile, spot gold is projected to trade between US$4,250 and US$4,350 per troy ounce, with fiscal concerns and central-bank demand providing support.”
The Star
