Gold prices surged over 1% in Asian trading, reaching a seven-week high amid softer oil prices, declining inflation concerns, and shifting market sentiment on geopolitical risks. Investors await US labour data with expectations of higher gold prices ahead.
Gold extended its rally in Asian trading on Thursday, climbing more than 1% as softer oil prices eased inflation worries and bolstered expectations that interest rates may not stay elevated for much longer. VietnamPlus reported that spot gold rose to $4,285.89 an ounce at 1:35 pm in Vietnam, after touching a seven-week high in the previous session, and was up 6% for the week. Futures also advanced, reaching $4,344.90 an ounce.
The move has been helped by a shift in market sentiment over geopolitical risk and inflation. According to StoneX, hopes of a quicker easing in Middle East tensions have reduced some inflation forecasts, allowing gold to break out of a consolidation pattern above $4,000 an ounce. That matters because gold tends to benefit when investors expect slower price pressures, but it can lose appeal when borrowing costs remain high, since the metal pays no yield.
Investors are now focused on the US labour report for July, due from the Labour Department. Even so, StoneX said the $4,000 level appears to be solid support, with buyers likely waiting for dips in anticipation of a further move higher towards $4,600 an ounce.
Other precious metals also gained. Silver rose 3.3% to $63.48 an ounce and platinum increased 1.5% to $1,755.90. In Vietnam, Saigon Jewellery Company quoted SJC gold at 139.2 million dong a tael for buying and 142.2 million dong for selling in Hanoi on Thursday afternoon.
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