Global Market Highlights (6 August 2026)

1. Gold Extends Rally to a Fourth Straight Session, Reaching a Seven-Week High

• Spot gold rose for a fourth consecutive trading session, briefly climbing to around US$4,265 per ounce, its highest level in nearly seven weeks.

• The rally was mainly supported by:

• A weaker U.S. dollar

• Declining U.S. Treasury yields

• Reduced expectations of further Federal Reserve rate hikes

• Investors are now awaiting this week's U.S. Nonfarm Payrolls (NFP) report for clearer guidance on the Federal Reserve's next policy move.

2. Diplomatic Progress in the Middle East Weighs on Oil Prices

• Market sentiment improved following optimistic developments in diplomatic talks involving the United States, Iran, and Oman.

• Continued progress in negotiations could further ease shipping risks through the Strait of Hormuz.

• As geopolitical risk premiums declined, international crude oil prices continued to pull back.

3. Markets Focus on the U.S. July Nonfarm Payrolls Report

This week's key economic releases include:

• U.S. July Nonfarm Payrolls (NFP)

• U.S. Unemployment Rate

• Average Hourly Earnings

Investors will closely monitor these figures to assess:

• Whether the U.S. labor market is beginning to cool

• The Federal Reserve's future interest-rate path

• The outlook for the U.S. dollar

• The next direction for gold prices

Overall, market participants remain cautious ahead of the data.

4. U.S. Dollar Remains Under Pressure

The U.S. Dollar Index continues to trade on the weaker side due to:

• Lower U.S. Treasury yields

• Easing expectations for additional monetary tightening by the Federal Reserve

A weaker dollar generally supports gold prices by making the precious metal more attractive to overseas investors.

5. Global Markets Shift Their Focus Back to Monetary Policy

As geopolitical tensions in the Middle East gradually ease, market attention is shifting from geopolitical developments toward macroeconomic fundamentals, including: