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Gold climbs to near two-week high as USD softness returns
Gold traded around the $4,141 area during the Asian session as US-Iran deal optimism and OPEC+ supply moves weighed on the dollar.
Gold advanced for a second straight session, reaching a nearly two-week high around $4,141 during the Asian session, according to FXStreet. The move came alongside renewed US Dollar selling, driven by improving expectations for a potential US-Iran deal and signs of progress toward reopening the Strait of Hormuz.
FXStreet linked the bid in gold to easing rate-hike expectations for the Federal Reserve, alongside separate data and policy signals that keep markets balanced. Still, traders are not fully stepping back from the possibility of higher borrowing costs by the end of the year, with recent commentary from Federal Reserve officials supporting tighter policy in order to fight inflation.
The backdrop also included US labor market information. The Bureau of Labor Statistics said job openings edged lower to 7.36 million in the latest Job Openings and Labor Turnover Survey, while remaining above last year’s levels, and FXStreet noted that the market focus next turns to the Nonfarm Payrolls report on Friday.
In commodities supply, FXStreet pointed to OPEC+ increasing production from September, which helped ease crude oil supply concerns and kept pressure on inflation worries. With gold offering no yield, the combination of USD softness and less hawkish inflation pricing supported further near-term strength, FXStreet said.
Latest closeGold $4,133.60 ▲2.5%|WTI crude $75.32 ▼6.2%