Gold Holds Steady as Yields and Dollar Soften
Gold prices held steady below $4,200 on Wednesday as retreating bond yields and a softer US Dollar provided support. However, hawkish Federal Reserve expectations capped upside, with traders awaiting important US macro data before making fresh directional bets.
The release of key US economic indicators, including the Personal Consumption Expenditures (PCE) Price Index and final Q2 GDP print, will be closely watched for cues on the central bank's future policy path. The US ISM Manufacturing PMI and Nonfarm Payrolls report are also due later this week.
Strategists at OCBC argue that near-term market focus remains on US labour data, with this week's job market report highlighted as a key event risk. They expect nonfarm payrolls to rise by 90,000 in September, down from 162,000 in August.