Gold extends losses as higher Treasury yields offset safe-haven demand

Gold prices moved lower in the latest session, extending losses from the morning trade.

As investors weighed weaker US employment data against the Federal Reserve's latest policy signals, elevated Treasury yields, and ongoing geopolitical tensions surrounding the Strait of Hormuz.

At the time of writing, spot gold traded at $4,104.30 per ounce, down 0.44%, compared with $4,115.79 per ounce in the previous session, when the metal had declined 0.1%.

Meanwhile, US gold futures for August delivery fell 0.4% to $4,124.90 per ounce.

The precious metal also remained on course for a weekly decline of 1.4%, according to the earlier session's market update.

Silver also weakened during the latest session.

Spot silver traded near $59.49 per ounce, down 0.57%, after fluctuating within an early trading range.

Gold remains above key support despite fresh losses

Gold traded within an intraday range of $4,093.70 to $4,135.50, remaining above the $4,090 support area.

However, prices continued to trade below the $4,162-$4,214 resistance zone, which has capped the latest rebound.

Silver traded between $59.15 and $60.89 during early trading.

Although the metal held above Thursday's lows, it was unable to regain the $61.00 level.

Payroll data and Fed minutes leave market sentiment divided

Investor positioning in precious metals remained mixed following last Thursday's US June employment report and Wednesday's Federal Reserve meeting minutes.

The latest employment data showed 57,000 jobs were added in June, roughly half of market expectations.

The unemployment rate remained unchanged at 4.2%, while payroll figures for April and May were revised lower by a combined 74,000 jobs.

The softer labour market initially supported gold by reducing expectations for additional Federal Reserve tightening.

Strait of Hormuz tensions remain in focus

Geopolitical developments also remained closely monitored.

The Strait of Hormuz continued operating normally despite elevated political and shipping risks.

Oil prices remained volatile following a series of unclaimed strikes in southern Iran, while both Washington and Tehran maintained that the strategically important waterway should remain open.

However, markets are not currently pricing in a complete blockade.

In energy markets, Brent crude traded near $77.08 per barrel, while Nymex WTI crude traded around $72.73 per barrel.

Higher oil prices continued to provide support to the energy market while also reinforcing inflation concerns that have limited gold's upside by supporting higher yields.

Inflation data remains the next major catalyst

Market participants are now focused on the upcoming US Consumer Price Index (CPI) release.

Any further developments affecting shipping through the Strait of Hormuz, and additional communication from Federal Reserve officials following this week's policy minutes.

A softer inflation reading could ease pressure from higher real yields and improve gold's prospects of testing the $4,162-$4,214 resistance zone.