Gold Rebounds on Weak US Data, But High Yields Cap Gains

Gold prices rose by 1.39% to $4,184.97 an ounce on Wednesday, September 30, after a 3.12% loss on Monday.

The rebound was driven by weak US data, including JOLTS job openings of 7.079 million, which fell short of the 7.23 million forecast, and Conference Board consumer confidence at 81.9, down from an expected 89.2, its lowest since 2014.

The odds of an October Fed rate hike dropped to 51.5% from 70.9%, with investors seeing fewer expected hikes as reducing the opportunity cost of holding gold.

However, gains were limited by a 10-year Treasury yield of 5.25% and a two-month high dollar index of 101.37, which raised the return on cash and bonds relative to bullion.