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Gold rises toward $4,500 as dollar and Treasury yields ease

Gold is up 2.8% on the day around $4,509, supported by a retreat in the 10-year US Treasury yield to about 4.75%.

Reported · Written up by our desk · Precious Metals

Gold extended its rebound on Thursday after earlier weakness pushed the price below $4,300 to a nearly four-week low, with the metal trading around $4,509, up 2.8% on the day, according to FXStreet.

The move was supported by a weaker US dollar, with the US Dollar Index near a one-week low around 99.00, after rising to 99.86 the prior day, as well as a pullback in US Treasury yields. The benchmark 10-year yield was around 4.75%, down for a second straight day after reaching 4.81%.

FXStreet also pointed to mixed US data, including higher initial jobless claims of 206,000 for the week ending August 29 and an August ISM Services PMI that rose to 55.4 from 54.1. While a weaker dollar can be supportive for gold, the outlet noted headwinds such as elevated government bond yields, rising oil prices tied to the Middle East conflict, and renewed questions about whether the Federal Reserve will hike.

Markets are watching Fed expectations closely after comments from Fed Governor Christopher Waller, who said he is seeing signs of disinflation and that the September decision hinges on August inflation data. FXStreet cited CME FedWatch showing the probability of a rate hike at the September 15 to 16 meeting falling to about 48% from 63% a day earlier, with traders awaiting Friday nonfarm payrolls for more guidance.

Latest closeGold $4,431.70 ▲1.9%|Dollar index 99.58 ▼0.1%

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