Gold jumped more than 2% on Thursday, nearing $4,500 an ounce, as a weaker dollar and easing Treasury yields revived demand for bullion ahead of Friday's US jobs report. New York Fed President John Williams said inflation keeps easing, while a hawkish Jackson Hole speech from Fed Chair Kevin Warsh kept alive bets on a rate move at the Fed's meeting in about two weeks.
Gold prices jumped more than 2% on Thursday, nearing $4,500 an ounce, as a weaker dollar and easing Treasury yields revived demand for bullion ahead of Friday's US jobs report. The dollar's retreat, alongside a sharp rise in the Japanese yen, also supported bullion as currency-intervention concerns stayed in focus.
As of 08:16 ET, XAU/USD rose 1.2% to $4,474.77 an ounce, while Gold Futures gained 2.4% to $4,521.61. Silver climbed 1.7% to $66.44 an ounce and platinum added 0.5% to $1,769.24. The US Dollar Index fell 0.5% to 99.08.
Fed signals easing inflation as hiring slows
New York Fed President John Williams said there is evidence that US inflation is continuing to ease as the impact of tariffs fades, adding that higher energy prices are not spreading into other services. Fresh labor data reinforced that softer backdrop: US companies added 38,000 jobs in August, according to the ADP employment report, further tempering bets on aggressive Fed tightening.
That contrasts with Fed Chair Kevin Warsh, who took a much more hawkish stance in his speech at Jackson Hole last Friday, lifting expectations that the central bank could raise rates to contain inflation when policymakers meet in about two weeks.
Trump's Iran remarks cool oil-driven inflation fears
President Trump said the latest US strikes on Iran would likely be short-lived, comments that helped slow oil's recent rally and eased some of the inflation concerns weighing on bullion. The fighting had revived fears of a broader, longer conflict, since sustained disruptions to energy supplies could push oil prices higher, and pricier energy can feed inflation and make the Fed less willing to ease policy.
Higher rates tend to weigh on gold because the metal generates no interest; when bond yields and expected policy rates rise, investors gain a greater incentive to hold income-generating assets instead. Even so, gold's rebound has now extended into a second session after the metal touched a near four-week low on Wednesday, as the dollar retreated and Treasury yields eased from recent highs. Gold rose as much as 1.6% on Wednesday as the greenback fell following the sharp rise in the Japanese yen.
Source: Investing.com
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