Gold price hits highest level since June on weak payrolls data and Hormuz deal hopes

Gold surged to $4,295 per ounce on Thursday—its highest level since late June—driven by weaker-than-expected U.S. payrolls data and optimism surrounding a potential reopening of the Strait of Hormuz. Spot gold later pulled back to $4,268 per ounce, while gold futures traded at $4,329 per ounce.

The rally follows disappointing employment figures that reinforced expectations for a more accommodative Federal Reserve stance, boosting demand for non-yielding assets like gold. Simultaneously, diplomatic progress on reopening the Strait of Hormuz—a critical chokepoint for global oil flows—eased geopolitical risk premiums in energy markets while supporting safe-haven flows into precious metals.

The move marks a significant breakout from gold's recent trading range, with spot prices climbing more than $25 intraday before profit-taking trimmed gains. Futures markets are pricing in sustained strength as macro conditions align: softer labor data, ongoing Middle East tensions, and positioning ahead of further Fed policy signals.