Gold Prices Rise on Weaker Dollar and Easing Treasury Yields Ahead of Non-Farm Payrolls Report

Gold prices rose on Thursday as the US dollar and Treasury yields eased, ahead of the closely watched non-farm payrolls report that could shape expectations for a Federal Reserve rate hike. Spot gold was up 1.2% to $4,437.08 per ounce, while U.S. gold futures rose 1.6% to $4,483.30.

The dollar index retreated from nearly three-week highs, and Treasury yields eased from multi-year highs. This modestly weaker dollar and slightly lower US rates are helping gold, according to UBS analyst Giovanni Staunovo.

Traders are pricing in about a 60% chance of an interest rate hike at the Fed's policy meeting later this month, according to the CME FedWatch Tool. The payrolls report will be the biggest defining moment of the week, with Ilya Spivak, head of global macro at Tastylive, saying that if the jobs report misses expectations and September rate hike bets decline, gold could move higher.

Oil prices edged lower on Thursday, as top aides of US President Donald Trump pushed to keep the Iran war from escalating before November's midterm elections.