Weaker US dollar boosts gold prices above the 4,120 mark as the market focuses on US employment data and the Middle East situation.

智通财经2026/08/05 02:51

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On Wednesday, supported by the continued weakening of the US dollar, spot gold at 10:40 surged as much as 1.15% to $4,124.23 per ounce during trading. The weaker dollar has increased the appeal of dollar-denominated gold for overseas buyers. Market participants are closely watching the release of key US employment data later this week for clues regarding the Federal Reserve's policy direction.
In terms of geopolitics, Qatar stated that mediators have made progress towards ending the US-Iran war, but Tehran denied Trump's claim that negotiations have started. Iran is considering allowing European countries to clear mines from the Strait of Hormuz, a concession that could form part of the normalization of maritime traffic and peace negotiations. US Secretary of State Rubio said negotiations have progressed but no final agreement has been reached, while Treasury Secretary Besent expected that an agreement could be reached as early as Tuesday or Wednesday.
On Tuesday, oil prices plummeted more than 5% to a three-week low, as remarks by Qatari and US officials boosted hopes for a diplomatic resolution to the conflict, potentially improving oil shipments through the Strait of Hormuz. The decline in oil prices has alleviated inflation concerns and pressure on the Federal Reserve to raise rates, dragging the US Dollar Index lower. Currently, traders are estimating about a 57% probability that the Federal Reserve will hike rates in September, much lower than the 80% from a week earlier.
On the data front, US job openings declined in June, with the healthcare and social assistance sector seeing the largest drop in nearly a year. However, improved hiring and fewer layoffs suggest the labor market remains stable.
Nevertheless, Philadelphia Fed Chair Paulson stated an "open attitude" toward future policy direction, believing that rates could rise further. The market focus is shifting to Friday's nonfarm payroll report. The US ADP jobs report and ISM non-manufacturing PMI data due out today also warrant attention.

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Weaker US dollar boosts gold prices above the 4,120 mark as the market focuses on US employment data and the Middle East situation.

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