Gold Prices Soar Towards $4,500 as USD Weakens

World gold prices surged on September 3, pushing towards the $4,500 mark as the US dollar and US bond yields cooled down.

The upward momentum in gold prices occurred when the USD was under downward pressure, while US Treasury bond yields cooled down after reaching a multi-year high. This made the greenback weaker, making gold more attractive to investors holding other currencies.

A strong jobs report from the US non-farm payroll may reinforce the view that the Fed needs to maintain tight monetary policy to control inflation, putting pressure on precious metals.