Gold Surges to Near $4,500 as Fed Rate Hike Expectations Cool

The price of gold surged on September 3, reaching nearly $4,500 per ounce, while silver reclaimed $66. This rally was driven by several factors, including the US August ADP employment data, which showed only 38,000 new private-sector jobs, and New York Fed President John Williams' statement that inflation continues to ease.

The market expectations for a September Fed rate hike cooled markedly from recent highs, with some reports showing probabilities above 60% earlier in the day but decreasing to around 50.4% by Thursday evening.

This shift in expectations led to a weaker US Dollar Index, which fell approximately 0.4% to 99.21, and Treasury yields declined in tandem, creating a favorable environment for precious metals.