Gold Slips to Two-Week Low as Yields, Dollar Firm; US Jobs Data Awaited
Gold hit a two-week low on Wednesday, pressured by higher Treasury yields and a firm dollar, as markets awaited US jobs data for rate signals.
Gold prices slipped to their lowest level in more than two weeks on Wednesday, weighed down by rising US Treasury yields and a steady dollar, as investors turned their attention to upcoming US employment data for clues on the Federal Reserve's interest-rate trajectory.
Spot gold steadied at $4,333.49 per ounce after touching its weakest point since August 14 earlier in the session. Prices were trading below their 200-day moving average, a key technical level watched by traders. US gold futures for December delivery fell 0.4% to $4,380.40.
The dollar held firm, making greenback-priced bullion more expensive for holders of other currencies. Meanwhile, US Treasury yields advanced, supported by escalating tensions in the Middle East and concerns over rising inflation.
While gold is traditionally seen as a hedge against inflation, higher interest rates diminish its appeal since the metal offers no yield. Federal Reserve Governor Michael Barr indicated that if inflation does not cool quickly, it would be time for the central bank to consider raising interest rates.
Market participants are now awaiting the ADP employment report due later in the day, with the more closely watched nonfarm payrolls data scheduled for Friday. Recent data showed US job openings increased in July, driven by a surge in manufacturing vacancies, though weak hiring suggested the labour market remained in a holding pattern.
Among other precious metals, spot silver edged up 0.1% to $64.31 per ounce, while platinum slipped 0.2% to $1,736.93 and palladium declined 0.2% to $1,308.25.