Gold Bounces on Weaker Dollar, but Rate Hike Fears Remain
Gold prices rose on Tuesday as a softer US dollar helped bullion recover from two sessions of losses. Spot gold gained 0.6% to $4,429.89 an ounce in early Asian trading.
The dollar index fell about 0.4%, making bullion cheaper for buyers using other currencies. This move offered immediate support after gold came under pressure from Friday's jobs report.
US employers added 162,000 jobs in August, while unemployment held at 4.1%, according to the Bureau of Labor Statistics. July payrolls were also revised to a 21,000 increase from an initially reported decline of 23,000.
This stronger-than-expected employment report has revived expectations for tighter monetary policy, with markets assigning roughly a 60% probability to a September Fed rate hike.
Attention now turns from employment to inflation. The Bureau of Labor Statistics will release August producer prices on Thursday followed by consumer prices on Friday.