Gold Hits 2-Month High Above $4,400 as China Keeps Hoarding

Gold muscled back above $4,400 an ounce this week, hitting its highest level in roughly two months as a brutal U.S. jobs print, relentless Chinese central bank buying, and suddenly softer Federal Reserve expectations sent traders scrambling back into bullion.

The spark came straight from the July U.S. employment report. The economy shed 23,000 jobs when economists expected roughly 80,000 new positions, while hefty downward revisions made previous months look considerably weaker.

Gold pays nothing to hold, making rising yields one of bullion’s most reliable pressure points. When yields retreat, that disadvantage shrinks, and capital has fewer reasons to stay parked in bonds and cash.

The rally also punched gold cleanly above its 100-day moving average, a technical line traders closely monitor. Breaking that barrier pulled more buyers off the sidelines after gold had been hammered toward $3,966 during its summer correction.

Official Chinese reserves climbed to about 76.08 million ounces by the end of July. Chinese gold exchange-traded funds have also drawn fresh inflows, stacking investor demand directly on top of persistent central bank accumulation.

Central banks prize gold because it carries no dependence on another government or currency issuer. That steady institutional bid has repeatedly put a floor beneath prices, even when a stronger U.S. dollar should have squeezed bullion harder.

Persistent U.S.-Iran tensions have added another reason to keep gold close, particularly because trouble around the Strait of Hormuz could disrupt global oil supplies and reignite inflation fears.

“Gold and silver rallied today, along with oil’s 5% rise,” Schiff wrote on the social media platform X. “Metals are breaking free of the recently developed negative correlation with oil. Gold and oil should rise together, as inflation pushes the CPI and bond yields higher, while the U.S. economy weakens as more jobs disappear.”

“Gold is now above $4,400. Silver is approaching $66. The market is telling you something. Are you listening?”

The next showdown is U.S. inflation data. A softer consumer price index (CPI) could further weaken the case for Fed tightening and give gold another shot at turning its recent breakout zone into durable support.

A hotter print could quickly wreck that setup by pushing Treasury yields and the dollar higher. Traders are now eyeing $4,500 and gold’s 200-day moving average to see whether this comeback has another leg or becomes another failed breakout after a blistering recovery.