Gold rises as dollar and yields ease, with US nonfarm payrolls report in spotlight
Gold prices have risen as the US dollar and Treasury yields softened, with investors closely watching upcoming non-farm payrolls data to gauge the Federal Reserve's next interest rate move. Market sentiment remains sensitive to inflation data and potential rate hikes, which influence the appeal of non-yielding assets like bullion.
Why it matters
Gold's price fluctuations serve as a key indicator of global economic uncertainty and investor expectations regarding US monetary policy.
BURSA SGX Home Precious Metals Make The Edge Malaysia your preferred source on Google BENGALURU (Sept 3): Gold extended gains on Thursday, buoyed by a drop in the US 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 0.9% at US$4,425.83 per ounce by 1046 GMT, while US gold futures rose 1.3% to US$4,472.
Bullion slipped to its lowest level since Aug 7 on Wednesday before settling more than 1% higher as the US dollar index retreated from nearly three-week peak, while Treasury yields eased from multi-year highs.
"Modestly weaker dollar, and slightly lower US 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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