Gold Rises Above $4,400 Amid Easing Inflation Fears
Gold prices rose on Thursday, climbing back above $4,400 an ounce after a 1% gain in the previous session. A softer dollar and lower Treasury yields eased some of the pressure from recent Federal Reserve rate hike bets.
Fed signals easing inflation as jobs growth slows: President John Williams said there is evidence that U.S. inflation is continuing to ease as the impact of tariffs fades. He also noted that higher energy prices are not spreading into other services. Fresh labor market data added to this softer backdrop, with U.S. companies adding 38,000 jobs in August, according to the ADP employment report.
The more moderate pace of hiring tempered expectations for aggressive Fed tightening. This comes as Fed Chair Kevin Warsh took a much more hawkish stance in his speech at Jackson Hole last Friday, lifting expectations that the central bank could raise rates to contain inflation when policymakers meet in about two weeks.