Gold Rebounds Above $4,350 as US Dollar and Treasury Yields Slip
The price of gold has rebounded above $4,350 after a nearly one-month low as the US Dollar and Treasury yields slipped. The precious metal edged higher in early Asian trading on Thursday.
Federal Reserve Bank of New York President John Williams said that rising long-term bond yields are not driven by inflation fears but rather by a solid economy. This shift in perspective has given gold a boost, allowing it to bounce off recent lows.
The market is now awaiting the US August Nonfarm Payrolls (NFP) data due later on Friday, which could have a significant impact on the Fed's decision-making process. Rising tensions in the Middle East may also lead to increased energy-driven inflation concerns and boost the prospect of Fed rate hikes, potentially capping gold's upside.
The US launched new airstrikes on Iranian targets, prompting counter strikes by Tehran targeting US interests in Bahrain, Kuwait, Jordan, and Iraq, fueling concerns about a wider renewal of hostilities. President Donald Trump said that the US had launched a wave of 'large and powerful' strikes on Iranian targets near the Strait of Hormuz.