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Gold Breaks Above $4,400 as Rally Reclaims Key Ground

The move signals lower near‑term odds of a Fed rate rise as traders weigh weak U.S. jobs, incoming inflation reads and Strait of Hormuz diplomatic uncertainty alongside steady Chinese official buying.

Overview

  • Gold climbed above $4,400 per ounce on Tuesday, its strongest close in over two months after a multi‑session rally that recovered from June lows near $3,940.
  • The surge followed softer U.S. payrolls and comes with July CPI and PPI reports due this week, which have pushed market pricing for a September Fed hike noticeably lower.
  • Diplomatic talks over the Strait of Hormuz and Iran’s conditions for reopening shipping lanes have lifted oil prices and safe‑haven demand, adding an inflation risk that supports bullion.
  • Official‑sector buying, led by China’s central bank increasing reserves in July, plus recent short covering and returning ETF inflows, have provided structural support after large mid‑year outflows.
  • Traders and technical analysts point to near‑term resistance around $4,460–$4,500 and say a decisive break above that zone could open a larger rally while local markets face amplified moves from currency shifts and taxes.