Gold rises as dollar and yields ease, ahead of U.S. payrolls report
Gold prices rose as the U.S. dollar and Treasury yields softened, with investors awaiting non-farm payroll data. The market is closely watching for signals regarding a potential Federal Reserve interest rate hike in September.
Why it matters
Gold price fluctuations reflect broader investor sentiment regarding U.S. economic health and monetary policy.
Gold extended gains on Thursday, buoyed by a drop in the U.S. dollar and Treasury yields from highs, as investors awaited key payrolls data that could tip the scales on expectations for a Federal Reserve rate hike this month.
Spot gold was up 1.2% to $4,437.08 per ounce, while U.S. gold futures rose1.6% to $4,483.30.
Bullion slipped to its lowest level since August 7 on Wednesday before settling more than 1% higher as the U.S. dollar index retreated from nearly three-week peak, while Treasury yields eased from multi-year highs.
"Modestly weaker dollar, and slightly lower U.S. rates are helping gold. With the Fed currently offering no forward guidance, gold remains highly sensitive to shifts in market expectations for the September meeting," said UBS analyst Giovanni Staunovo.
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