Weaker Dollar Boosts Gold Near $4,070 Amid Fed Concerns
Gold prices have recovered towards $4,070 an ounce after concerns about Federal Reserve tightening pressured bullion. The metal gained 0.7% to $4,068.54 by 4:37 am GMT, while US futures rose 0.9% to $4,066.60.
The dollar weakened after authorities intervened to support the yen, making gold cheaper for buyers using foreign currencies. This move has encouraged buy-the-dip arguments, but experts warn that the metal needs weakness in the dollar and Treasury yields before Monday's advance can be treated as a durable bottom.
Tim Waterer, chief market analyst at KCM Trade, described Monday's move as an 'upbeat but guarded start' in comments to Reuters. He warned that Middle East escalation pushing oil higher, or a strong nonfarm-payrolls report reviving September rate-rise expectations, could cap bullion's gains.