Gold Price Today, August 10, 2026: Gold Holds Near $4,340 After Best Week Since January

Key Takeaways

• Gold traded around $4,340–$4,342 per ounce during Monday’s Asian session after gaining more than 7% last week.
• An unexpected 23,000 decline in US payrolls sharply reduced expectations for a Federal Reserve rate hike in September.
• July US inflation data, Treasury yields and developments around the Strait of Hormuz could determine whether gold extends its breakout.

Gold Holds Firm Near $4,340 in Asian Trading

The gold price today remained broadly stable during early Asian trading on Monday, August 10, consolidating after its strongest weekly performance since January.

Spot gold traded at approximately $4,339.60 per ounce in early dealings, while another market snapshot placed the metal closer to $4,342. Prices briefly approached $4,355 before losing some momentum as US Treasury yields edged higher. Gold’s ability to remain above the psychologically important $4,300 level nevertheless indicated that buying interest remained present following Friday’s sharp rally.

Gold gained more than 7% last week and reached its highest level since June 17. Friday alone produced a 2.3% increase in spot gold to $4,336.02, while US gold futures settled 2.3% higher at $4,399.70. The rally followed several weeks of consolidation and represented a significant improvement from the yearly lows recorded earlier in the summer.

Weak US Jobs Report Supports Gold Demand

The main catalyst behind gold’s recovery was the unexpectedly weak July US employment report.

Nonfarm payrolls declined by 23,000 in July, compared with market expectations for an increase of approximately 80,000. May and June payroll figures were also revised down by a combined 103,000, suggesting that the labour market had been losing momentum for longer than initially reported.

The unemployment rate remained relatively stable at 4.1%, but the labour-force participation rate slipped to 61.4%. Average hourly earnings increased only 3.2% from a year earlier, while employment declined in local government education, retail trade and financial activities.

These figures weakened the argument for another immediate Federal Reserve rate increase. Futures markets reduced the probability of a September rate hike to approximately 44%, down from 57% immediately before the employment report and 67% one week earlier.

Lower expectations for interest-rate increases generally support gold because bullion does not pay interest. When bond yields and expected policy rates decline, the opportunity cost of holding gold becomes less significant.

Weaker Dollar Adds Support, but Yields Limit Gains

The US dollar index remained near a two-month low at approximately 99.6 on Monday. A weaker dollar can make gold less expensive for buyers using other currencies, potentially strengthening global demand for the precious metal.

The euro traded near its strongest level since mid-June, while the British pound remained close to a five-week high. These currency movements reflected a broader reduction in demand for the dollar following the weak US labour-market report.

However, Treasury yields continued to present a potential obstacle for gold. The benchmark 10-year US Treasury yield traded between approximately 4.64% and 4.67% during Monday’s Asian session. A sustained recovery in yields could encourage some investors to take profits after gold’s rapid weekly advance.

The current gold market therefore faces two competing forces. Reduced expectations for Fed tightening and a weaker dollar are providing support, while relatively elevated bond yields and improved equity-market sentiment could limit further safe-haven demand.

US CPI Is the Next Major Test for Gold

Attention is now shifting towards the July US Consumer Price Index report, scheduled for Wednesday.

Market forecasts point to a 0.1% monthly increase in headline inflation and a 0.2% rise in core CPI. Annual core inflation is expected to ease to 2.5% from 2.6% in June.

A softer-than-expected CPI reading could reinforce expectations that the Federal Reserve will leave interest rates unchanged in September. That outcome could place additional pressure on the dollar and yields, potentially helping gold challenge the $4,355–$4,390 resistance area.

In contrast, an upside inflation surprise could revive speculation about another Fed rate increase. Higher rate expectations would likely strengthen the dollar and Treasury yields, creating a risk of profit-taking in gold after last week’s 7% rally.

Producer price data on Thursday and US retail sales on Friday will provide further evidence on inflation and consumer demand. Together, these releases could produce another volatile week for XAU/USD.

Middle East Uncertainty Adds a Safe-Haven Layer

Developments in the Middle East remain another important driver for the gold price outlook.

Iran and Oman are reportedly close to finalising an arrangement concerning new shipping lanes through the Strait of Hormuz. However, Iran has maintained that the waterway will not fully reopen until the United States meets additional conditions.

This uncertainty pushed Brent crude oil back above $84 per barrel on Monday. Higher energy prices can complicate the inflation outlook while also increasing demand for defensive assets during periods of geopolitical instability.

For gold, continued disruption in the Gulf could provide safe-haven support. However, a clear agreement that restores normal shipping conditions may reduce geopolitical risk premiums and shift the market’s focus back towards US inflation and monetary policy.

Conclusion: Can Gold Extend Its Breakout?

Gold begins the week in a stronger technical and macroeconomic position, holding near $4,340 after breaking above the $4,300 level and recording its best weekly gain since January.

The immediate price range is likely to be shaped by $4,300 as an important support area and approximately $4,355–$4,390 as the next resistance zone. A sustained move above that upper region could bring $4,400 back into focus, while a return below $4,300 would indicate that profit-taking is becoming more influential.

Weak US employment growth, reduced expectations for a September rate hike and a dollar near a two-month low remain supportive for gold. The durability of the rally, however, will depend heavily on Wednesday’s CPI report and whether Treasury yields continue to recover.