Gold Hits Two-Week Low Amid US Jobs Data Uncertainty
Gold prices hit a two-week low on Wednesday due to higher U.S. Treasury yields and a stronger dollar, as investors await US jobs data for clues on interest-rate decisions.
The spot gold price steadied at $4,333.49 per ounce by 0017 GMT after hitting its lowest since August 14 earlier in the day. Gold futures for December delivery fell 0.4% to $4,380.40.
U.S. Treasury yields rose amid escalating tensions in the Middle East and concerns over rising inflation, making gold less appealing as it offers no yield. The U.S. dollar also held firm, increasing the cost of gold for buyers using other currencies.
The ADP employment report is due later today, while nonfarm payrolls data is scheduled to be released on Friday. Federal Reserve Governor Michael Barr stated that if inflation does not cool quickly, it will be time to increase interest rates.