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Gold jumps more than 2% as Waller cools Fed hike bets
XAU/USD was last around $4,487 after Initial Jobless Claims rose to 206K and ISM Services PMI climbed to 55.4, helping push September hike odds to 54% in money markets.
Gold prices rose more than 2% on Thursday, with XAU/USD moving to about $4,487 after Federal Reserve Governor Christopher Waller took a more dovish tone that reduced expectations for a near-term rate increase, FXStreet reported.
Waller said the Fed should consider holding rates steady if inflation continues to cool through the disinflation process, while leaving the door open to a hike if inflation comes in hotter than expected.
US data were mixed, including Initial Jobless Claims for the week ending August 29 increasing from 204K to 206K and the ISM Services PMI improving to 55.4 from 54.1, with its Prices Paid sub-component rising to 72.6.
The dollar weakened amid renewed Middle East-related tensions and speculation of a Japanese yen intervention, while money markets priced a 54% chance of a 25 basis point hike at the September 16 meeting; gold also accelerated above the September 1 high of $4,461 toward $4,500, with the next resistance cited as the 200-day simple moving average near $4,533.
Latest closeGold $4,431.70 ▲1.9%