Spot gold extended its rally on Thursday, breaking above the $2,420 per ounce level as softer U.S. labor-market data revived expectations that the Federal Reserve could begin cutting interest rates as early as September. The weaker dollar and declining Treasury yields provided fresh momentum for non-yielding assets, lifting bullion demand from Hong Kong to Singapore.
Traders in the Asia-Pacific region said persistent central-bank purchases, particularly from China and India, continued to underpin the market. "We are seeing renewed physical demand from Asian wholesalers ahead of the festival season, while ETF inflows in the region have turned positive for the first time in months," noted a precious metals strategist in Singapore.
From a technical perspective, gold has cleared the 50-day moving average and is now testing resistance near $2,450. A sustained break above that zone could open the path toward the all-time highs recorded earlier this year. Analysts caution, however, that any hawkish surprise from the Fed or a sharp rebound in real yields could trigger a short-term correction.
The U.S. dollar index fell 0.4% to a three-week low, while 10-year Treasury yields slipped below 4.25%. In currency-adjusted terms, gold priced in Japanese yen and Australian dollar also posted strong gains, reflecting broad-based demand across the region.
Looking ahead, market participants will focus on the upcoming U.S. CPI report and remarks from Fed officials. A cooler inflation print could cement expectations for rate cuts and keep gold supported, while sticky price pressures may force a reassessment of the current rally.
