Gold climbed more than 1% on Thursday to reclaim $4,400 an ounce, helped by a softer dollar and falling Treasury yields, while New York Fed President John Williams separately pointed to cooling inflation. The rebound extends a bounce off a near four-week low, with investors now awaiting Friday's US nonfarm payrolls report for the next signal on Fed policy.
Gold rose more than 1% on Thursday, climbing back above $4,400 an ounce as a softer dollar and lower Treasury yields eased pressure from Federal Reserve rate hike bets. As of 04:58 ET, XAU/USD gained 1.1% to $4,436.50 an ounce, while Gold Futures added 1.5% to $4,482.61. The dollar's retreat, alongside a sharp rise in the Japanese yen, also supported bullion as currency intervention concerns remained in focus.
Silver advanced 0.9% to $65.94 an ounce, while platinum rose 1.1% to $1,779.24. The US Dollar Index fell 0.4% to 99.21, and investors now turn to Friday's US nonfarm payrolls report for the next major policy clue.
Williams points to easing inflation as jobs growth slows
New York Fed President John Williams gave investors another reason to reassess the rate outlook. He said there is evidence inflation is continuing to ease as the impact of tariffs fades, and that higher energy prices are not spreading into other services.
Fresh labor data added to the softer backdrop: U.S. companies added 38,000 jobs in August, according to the ADP employment report. The moderate pace of hiring further tempered expectations for aggressive Fed tightening.
That contrasts with Fed Chair Kevin Warsh, who took a much more hawkish stance in his speech at Jackson Hole last Friday. His comments had lifted expectations that the central bank could raise rates to contain inflation when policymakers meet in about two weeks.
Trump's Iran remarks ease oil-driven inflation fears
Gold's rebound has extended into a second session after the metal touched a near four-week low on Wednesday. The bounce comes as the dollar retreats and Treasury yields ease from recent highs, reducing two of the main pressures that had weighed on bullion.
Trump said the latest U.S. strikes on Iran would likely be short lived, comments that helped slow oil's recent rally and reduced some of the inflation concerns weighing on bullion. The fighting had revived fears of a broader conflict that could push oil prices higher, feed inflation and make the Fed less willing to ease policy.
Higher rates tend to weigh on gold because the metal does not generate interest; when yields and expected policy rates rise, investors have greater incentive to hold income-generating assets instead. Gold rose as much as 1.6% on Wednesday as the dollar fell following the yen's sharp rise.
Source: Commodities & Futures News
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