Softer oil, Treasury yields and the U.S. dollar supported bullion, while U.S. moves to secure an Iran ceasefire and Chinese institutional buying added support ahead of U.S. jobs data.
Gold traded above $4,250 an ounce, reaching a seven-week high in Asian trading as lower energy prices, a softer U.S. dollar and easing Treasury yields supported bullion. The move came as U.S. officials signaled efforts to secure a ceasefire with Iran and protect trade through the Persian Gulf, helping send fuel prices sharply lower since the start of August and reducing concerns that energy-driven inflation would force further Federal Reserve tightening. Konstantinos Chrysikos at Kudo.com said developments around the Middle East remained a key driver: progress toward a resolution could push bond yields lower and help gold, while setbacks could revive demand for the greenback and weigh on the metal. Markets had been pricing in a Federal Reserve rate increase at the next meeting, though the odds of a hold were rising, and the upcoming U.S. jobs report could shape whether more dovish expectations gain momentum. Data from clearing institutions also showed Chinese institutional investors continued building long positions in gold-backed assets amid volatility in tech stocks and support from a physical market underpinned by central-bank buying.