In times of trouble, investors usually flock to so-called traditional haven investments but the Iran war has put a question mark next to several of these former flights to safety.
Spot gold rose on Friday, putting it on course for its first weekly gain since late May. It came as investors scaled back their bets on the Federal Reserve hiking rates in September.
Gold rose in early Asian trade as investors digested a cooler-than-expected U.S. jobs report.
Gold's recent correction has understandably raised questions about whether the precious metal's historic bull market is beginning to lose momentum.
The latest Kitco News Weekly Gold Survey showed bulls back in the driver's seat on both Wall Street and Main Street after gold reclaimed $4,100 ahead of the Independence Day long weekend.
Gold is testing overlapping resistance near key moving averages and a rising trendline, while the broader bearish structure from the 200-day breakdown continues to cap upside momentum.
Although inflation remains a persistent threat, the Federal Reserve was reminded Thursday of the other side of its dual mandate as the U.S. labor market lost momentum in June.
The disappointing Non Farm Payrolls report provided significant support to precious metals markets.
The gold market is attracting strong buying interest as the U.S. labor market loses momentum, with the economy creating fewer jobs than expected last month.Even football couldn't save the labor market. Expectations were elevated heading into the early release of the nonfarm payrolls report, as economists had forecast a hiring boost ahead of the World Cup football tournament.
Gold prices rocketed higher and reclaimed $4,100 on Thursday morning following the release of better than expected labor market data after the number of Americans filing new claims for unemployment benefits came in below economists' forecasts.
Gold rose in early Asian trade. Central bankers' less hawkish commentary could be supporting the yellow metal, ANZ Research said.
Despite gold's dramatic fall from $5,500 per ounce earlier this year to below $4,000 in late June, the yellow metal is still among the top performers over the past year, and demand central banks and long-term investors should limit downside risk as gold still retains clear upside potential for the remainder of 2026, according to the new mid-year outlook from the World Gold Council (WGC).