Ankara: Gold prices climbed to their highest level since late June, driven by weaker-than-expected US private payroll data, a softer dollar, and the potential reopening of the Strait of Hormuz. Spot gold rose to approximately $4,300 per ounce before settling around $4,260, marking its fourth consecutive session of gains.

According to Anadolu Agency, the precious metal's rise followed a report by payroll processing firm ADP, which highlighted a significant slowdown in private-sector hiring for July. The report indicated that most job creation occurred within the healthcare sector. The weaker labor market data has led to a reduction in expectations that the US Federal Reserve will increase interest rates in September, thereby supporting non-yielding assets like gold.

Gold's upward momentum was also aided by a weakened US dollar, with the dollar index nearing a two-month low of 99.66. The dollar faced pressure after a joint US-Japan intervention aimed at strengthening the yen. Reports indicated that Japan sold nearly $60 billion in US Treasury securities to finance the operation, while the US funded yen purchases through euro sales.

Additionally, optimism surrounding the reopening of the Strait of Hormuz has further bolstered gold prices. Iran announced that an agreement with Oman to reopen this strategic waterway was close, raising hopes of reduced tensions in the Middle East and alleviating inflationary pressures from high energy prices.

Despite the recent upswing, gold remains over 20% below its record high of $5,589 per ounce, which was achieved in late January.