Gold prices increased by 2.43% ($50) to rise above the $1,800/oz mark on Tuesday. A pullback in the U.S Dollar created a tailwind for the gold market – the U.S Dollar Index dropping 0.62% from its five-day high.

The U.S. non-farm payrolls increased by a bigger-than-expected 850,000 in June. However, the unemployment rate rose to 5.9% from 5.8% in the previous month. These factors created the momentum needed for gold prices to test the $1,790/oz technical resistance mark and subsequently break above $1,800. 

Concerns over the Delta variant of COVID-19 increased around the globe. Xiao Fu, head of commodity market strategy at Bank of China International, said that “if the global economy embarks on a solid, smooth and strong recovery (aided by vaccines), then gold could be subject to further headwinds”. However, the slow rollout of vaccines in the emerging markets can undermine global economic recovery and will increase golds safe-haven appeal.

In other news, Russia’s finance ministry said on Monday that their gold purchases on the market would total $4.04 billion over the next month – adding almost 70 tonnes onto an existing gold pile of 2,200 tonnes. This comes after Russia completely removed U.S. dollar assets from its National Wealth Fund.

The yellow metal was last seen trading at $1,805/oz.