Gold hits 7-week high on weak US payrolls, Hormuz hopes

Spot gold surged to approximately $4,300 per ounce on Thursday before moderating to trade near $4,260, marking its strongest level since late June as disappointing employment figures from the world's largest economy diminished prospects for monetary tightening. The precious metal extended gains for a fourth consecutive session after payroll processor ADP reported a sharp deceleration in private-sector hiring during July, with most new positions concentrated in the healthcare industry.

Dollar slides on intervention

The softer labor market data reduced expectations that the US Federal Reserve will raise interest rates in September, bolstering demand for non-yielding assets such as gold while the dollar index fell to a two-month low of 99.66. Currency markets came under pressure following coordinated intervention by Washington and Tokyo to strengthen the Japanese yen, with Japan reportedly selling nearly $60 billion in US Treasury securities to finance the operation.

Hormuz reopening optimism

Optimism regarding a potential reopening of the Strait of Hormuz provided further momentum to bullion prices after Iranian officials indicated Wednesday that an agreement with Oman to restore traffic through the critical waterway was imminent. The prospective deal raised hopes of de-escalating tensions in the Middle East while alleviating inflationary pressures stemming from elevated energy prices.

Market context

Despite the recent recovery, the yellow metal remains more than 20 percent below its record high of $5,589 per ounce, which was reached in late January. Spot prices have now advanced for four straight sessions, though analysts note that sustained gains may depend on continued deterioration in US economic indicators or concrete progress on the Hormuz negotiations.