Home›Commodities›Precious Metals›Gold rises above $4,350 as dollar and Treasury yields…

Gold rises above $4,350 as dollar and Treasury yields ease

The rebound comes ahead of Friday’s US August nonfarm payrolls, with traders still pricing a 62.3% chance of a Fed rate hike this month.

Reported · Written up by our desk · Precious Metals

Gold prices rebounded from a nearly one-month low to around $4,385 in early Asian trade on Thursday, moving back above $4,350 as the US dollar and Treasury yields retreated from recent highs, according to FXStreet.

The precious metal’s bounce reflected a “tick down” in yields that helped it recover from recent lows, even as investors weighed ongoing risks to the outlook. FXStreet said gold could face upside limits if Middle East tensions revive energy-driven inflation concerns and strengthen expectations for additional Fed rate hikes.

FXStreet also highlighted that gold is often treated as an inflation hedge, but it can become less attractive when interest rates are high because it does not pay a yield. Traders are looking to Friday’s US August nonfarm payrolls for direction, while the CME FedWatch tool showed a 62.3% probability of a Fed hike at the policy meeting this month.

In remarks covered by FXStreet, Federal Reserve Bank of New York President John Williams said rising long-term yields are not being driven by inflation fears, but instead reflect a solid economy. FXStreet further noted geopolitical developments linked to US and Iranian strikes that have helped keep markets focused on inflation and Fed timing.

Latest closeGold $4,431.70 ▲1.9%

More like this

Sources