Gold prices rose more than 1% on Thursday, moving back above $4,400 an ounce as the US dollar weakened and Treasury yields declined, while investors reassessed expectations for further Federal Reserve interest-rate increases.
Attention was also turning to Friday’s US nonfarm payrolls report for further indications on the outlook for monetary policy. A rise in the Japanese yen accompanied the decline in the dollar as concerns over possible currency intervention remained in focus.
As of 04:58 ET (08:58 GMT), XAU/USD was up 1.1% at $4,436.50 an ounce, while Gold Futures gained 1.5% to $4,482.61.
Silver also advanced, with XAG/USD rising 0.9% to $65.94 an ounce, while platinum gained 1.1% to $1,779.24. The US Dollar Index declined 0.4% to 99.21.
Williams Points to Easing US Inflation
Federal Reserve Bank of New York President John Williams said there was evidence that US inflation continued to ease as the effects of tariffs diminished.
Williams also said higher energy prices were not spreading into other services.
The comments came as investors continued to assess the outlook for US interest rates following recent expectations for further monetary tightening.
US Private-Sector Employment Increases by 38,000
US companies added 38,000 jobs in August, according to the ADP employment report.
The employment figures provided another data point for investors assessing labour-market conditions ahead of Friday’s nonfarm payrolls report.
The latest developments followed Federal Reserve Chair Kevin Warsh’s speech at Jackson Hole last Friday, where he adopted a more hawkish position on monetary policy, according to the source material.