1 hr ago
Gold Rebounds as Dollar and Treasury Yields Retreat
Gold prices went back up after falling to their lowest level in nearly a month.
The U.S. dollar and government bond yields both became weaker.
When these investments become less attractive, gold can sometimes look more appealing.
Investors are waiting for an important U.S. jobs report on Friday.
That report may give clues about what the Federal Reserve will do with interest rates.
A private jobs report was weaker than expected, but gold barely reacted.
One analyst said the private report is less important than the official jobs report.
Traders currently see a 64% chance of an interest rate hike this month.
Other precious metals, including silver, platinum, and palladium, also rose.
Spot gold rose 1.1% to $4,376.41 an ounce, rebounding from its lowest level since August 7.
U.S. gold futures for December delivery gained 0.4% to settle at $4,414.60.
The U.S. dollar and Treasury yields pulled back after recently reaching multi-year or near three-week highs.
Investors focused on Friday’s U.S. nonfarm payrolls report for clues about the Federal Reserve’s policy path.
Traders priced a 64% chance of an interest rate hike at the Federal Reserve’s meeting this month, according to CME FedWatch.
- Who
- Gold-market investors, the Federal Reserve, and traders monitoring U.S. economic data.
- What
- Gold rebounded more than 1% as the U.S. dollar and Treasury yields retreated from recent highs.
- Where
- Global financial markets, including U.S. dollar and Treasury markets; gold was quoted per ounce.
- When
- September 2, Wednesday; spot prices were reported at 1:57 p.m. EDT, ahead of Friday’s nonfarm payrolls report.
- Why
- The dollar and Treasury yields eased, while investors awaited payrolls data for indications about the Federal Reserve’s interest-rate policy.
Key facts
- Spot gold
- Up 1.1% to $4,376.41 an ounce at 1:57 p.m. EDT
- Gold’s session low
- The lowest level since August 7
- December gold futures
- Up 0.4% to settle at $4,414.60
- U.S. dollar
- Slipped from a near three-week peak
- Treasury yields
- Eased after reaching multi-year highs earlier in the session
- Rate-hike pricing
- Traders priced a 64% chance of an interest rate hike at the Federal Reserve’s meeting this month
- Other metals
- Silver rose 1.2%, platinum 0.9%, and palladium 3.18%
Quotes
Rhona O'Connell
Head of market analysis at StoneX
“One of the reasons that gold has been able to move back above unchanged is we have seen a little tick down in yields for the day and that has allowed gold to bounce off some of the recent lows.”
livemint.com
“ADP is unreliable and it might set the tone for non-farm, but non-farm is by far the most important one ,”
livemint.com
Sources
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