Gold Surges as ETF Inflows and Weak US Jobs Data Boost Prices
Gold | 2026-08-11 05:55:17
Gold has moved out of its July range. The World Gold Council sees the $ 4,493-per-ounce 200-day moving average as the next major technical hurdle, followed by resistance near $4,574, which, if broken, could signal a long-term uptrend in gold prices.
By Paul Ploumis
SEATTLE (Scrap Monster): Gold staged its strongest weekly rally in more than six years, with prices jumping 7.7% in the week ended August 7, according to the World Gold Council’s latest Weekly Markets Monitor. The LBMA Gold Price PM ended the week at around $4,336 an ounce, closing at the highest weekly level since early June.
The jump in gold prices was led by a combination of weaker US employment data, easing concerns over inflation and stronger investor demand. Gold-backed exchange-traded funds (ETFs) recorded broader inflows, while futures positioning and options markets also shifted in a more positive direction. Chinese investors added nearly 6 tonnes to gold ETFs during the first week of August, while the People’s Bank of China reported a 20-tonne gold purchase in July- the largest purchase in almost three years.
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Meanwhile, global equity markets advanced during the week, while oil prices eased. Also, U.S. Treasury yields and the US dollar edged lower.
Gold has moved out of its July range. The World Gold Council sees the $ 4,493-per-ounce 200-day moving average as the next major technical hurdle, followed by resistance near $4,574, which, if broken, could signal a long-term uptrend in gold prices. Meanwhile, the initial support is seen at $4,224 an ounce.
Markets will now keep a close watch on US inflation data and signals by the U.S. Federal Reserve about future interest-rate path, the report said.
POLL
What is the biggest factor supporting the recent gold price rally?
Frequently Asked Questions
- How much did gold prices rise during the week ended August 7?
Gold prices jumped 7.7%, marking their strongest weekly rally in more than six years. The LBMA Gold Price PM ended the week at around $4,336 per ounce, its highest weekly close since early June.
- What factors drove the sharp increase in gold prices?
The rally was supported by weaker US employment data, easing inflation concerns and stronger investor demand. Gold-backed ETFs also recorded broader inflows, while futures and options positioning became more bullish. Lower US Treasury yields and a weaker dollar provided additional support.
- How significant was recent central bank and Chinese investor demand?
Demand from China was particularly notable. Chinese investors added nearly 6 tonnes to gold ETFs during the first week of August, while the People’s Bank of China purchased 20 tonnes in July, marking its largest monthly gold purchase in almost three years.
