Gold Surges to One-Month High as Inflation Fears Ease
Gold prices jumped more than 2% during Wednesday's trading (Aug 5), reaching a one-month high. In the latest update, spot gold rose approximately 2.4% to US$4,175.53 per troy ounce, while US gold futures strengthened 2% to US$4,235.30.
The rally followed progress in US-Iran talks, which raised hopes for the reopening of the Strait of Hormuz. The prospect of normalized supplies weighed on oil prices, easing inflation concerns and pushing US Treasury yields lower. These conditions benefited gold by reducing the opportunity cost of holding a non-yielding asset.
A weakening US dollar also made gold cheaper for holders of other currencies. Markets now estimate a roughly 59% probability of a Federal Reserve rate hike in September, down from 67% the previous day. However, hawkish statements from Fed officials like Jeff Schmid remain a headwind, as inflation is still considered too high and current policy insufficiently tight.
Market focus now shifts to the ADP Non-Farm Employment Change data scheduled for release tonight at 19:15 WIB, with an estimated 68,000 jobs added—down from the previous 98,000. The July Non-Farm Payrolls (NFP) report will follow on Friday at 19:30 WIB and could shape future interest rate expectations.
Other precious metals also strengthened. Silver rose 3.8% to US$61.76, platinum gained 2.6% to US$1,779.25, while palladium rose 2.6% to US$1,389.15, hitting a two-month high.
Newsmaker Analysis: Gold's momentum remains bullish after breaking through the US$4,150 level. Immediate resistance lies in the US$4,180–US$4,200 range. A breakout above that area could open the door to the US$4,230–US$4,250 range. Support levels lie at US$4,140, followed by US$4,100. Weaker-than-expected ADP data could extend the rally, whereas strong data might boost the dollar and trigger profit-taking in gold.
Source: Newsmaker.id
