Gold Price Rises as Dollar Weakens Ahead of US Jobs Data
Gold prices ticked up on Wednesday due to a softer US dollar, making metals priced in greenbacks more attractive to holders of other currencies. Spot gold rose 0.1% to $4,081.09 per ounce by 0040 GMT, while US gold futures fell 0.4% to $4,137.20.
The focus this week is on the upcoming US July payrolls report scheduled for release on Friday. The ADP employment report will be out later in the day, providing further insight into the labor market's performance. A strong jobs report could influence the Federal Reserve's decision on its next monetary policy move.
Qatar announced that mediators are making progress in efforts to end the US-Iran war, although Teheran has denied US President Donald Trump's assertion that talks are already underway. The recent spike in oil prices due to the conflict has sparked bets that the Fed might need to raise rates to keep inflation in check.
Gold's appeal tends to wane in a high-rate environment, despite its status as an inflation hedge. Traders are now pricing in 57% odds of a hike at the US central bank's September 15-16 meeting.