Gold Rebounds as Dollar and Yields Pull Back from Recent Highs
Gold prices rebounded by over 1% on Wednesday as the US dollar and Treasury yields pulled back from their recent highs. The precious metal rose to $4,376.41 an ounce, its highest level since August 7, after falling to a near one-month low earlier in the session.
The US dollar slipped from its near three-week peak, while US Treasury yields eased following multi-year highs. This shift helped gold prices recover some of their recent losses, with David Meger, director of metals trading at High Ridge Futures, attributing the rebound to a 'little tick down in yields for the day'.
The Federal Reserve's policy path remains uncertain ahead of Friday's nonfarm payrolls report. Traders are currently pricing in a 64% chance of an interest rate hike at the central bank's policy meeting this month, according to the CME FedWatch Tool.