Gold Rebound Hinges on Payrolls Report
Gold prices rebounded above $4,400 an ounce on Thursday after softer US labor data and easing Treasury yields provided some relief for bullion. Spot gold climbed over 1% to around $4,435 in later Asian trading, while US futures rose about 1.5% to $4,480.
The move followed a drop to a near one-month low earlier this week, when higher oil prices and renewed surge in bond yields revived expectations for another Federal Reserve rate increase.
Attention now turns to Friday's August payrolls report, the final major labor-market release before the Fed's September 15-16 meeting. Weaker employment data could reduce the case for aggressive tightening and push rate expectations lower, lifting gold prices.
However, if payrolls come in strong or the Fed becomes more hawkish, it could send yields and the dollar higher and crush gold's rebound.