Commodities
Dollar Weakness Boosts Gold Prices Ahead of US Jobs Report
Gold prices rose slightly on Wednesday as the dollar weakened, making dollar-denominated metals more attractive to holders of other currencies. Spot gold increased by 0.1% to $4,081.09 per ounce.
The US jobs report for July is due on Friday, and market participants are awaiting its release for clues about the Federal Reserve's next move on monetary policy. The ADP employment report is scheduled for later in the day.
A sharp rise in oil prices has fueled expectations that the Federal Reserve may be forced to raise interest rates to curb inflation. However, gold's appeal diminishes when interest rates rise, despite its status as a hedge against inflation.