Gold Defies Odds as Dollar Weakens and Fed Hikes Loom
The price of gold has held steady near $4,067 an ounce on August 4, 2026, despite market changes. The metal's value is being supported by a softer US dollar and central-bank demand. This stability comes at a time when the 10-year Treasury yield is near an 18-month high, and oil prices have fallen due to resuming talks with Iran.
The Federal Reserve's decision on interest rates is also having an impact. As of August 4, 2026, futures priced roughly a 68% probability of a 25 basis point hike at the September 16 meeting, according to CME FedWatch. This would be a significant move, and one that could affect gold prices.
The labor market is also being closely watched, with June nonfarm payrolls rising only 57,000, well below expectations. A weak jobs report on Friday could push the Fed closer to a rate hike, which would normally hurt gold prices. However, gold has shown resilience in the face of these headwinds.