Gold Rebounds Over 1% as Dollar Eases Ahead of US Jobs Report
Gold prices surged over 1% on September 3, as a weaker dollar and easing US Treasury yields provided support to the precious metal. The focus is now on the upcoming US jobs report due on September 4, which could provide clues for the Federal Reserve's next rate move.
The dollar came under pressure, falling 0.37% to 99.18, while US Treasury yields pulled back from multi-year highs, easing to 4.76%. A weaker dollar makes gold cheaper for buyers holding other currencies and can boost demand for the yellow metal.
Investors await the US jobs data for clues on the Federal Reserve's next move on interest rates. Satish Dondapati, fund manager at Kotak Mutual Fund, said a weaker-than-expected payroll report could increase expectations of rate cuts, lower bond yields, and also weaken the dollar, all of which would be positive for gold.