Gold Seeks Safe Haven as Dollar Weakens Ahead of Payrolls Report

Gold prices rose on Thursday as the US dollar softened and Treasury yields eased from multi-year highs, ahead of the closely watched non-farm payrolls report due Friday.

The spot gold price increased by 0.9% to $4,425.83 per ounce, while U.S. gold futures rose 1.3% to $4,472.

Analysts say a modestly weaker dollar and slightly lower US rates are helping gold, but the metal remains highly sensitive to shifts in market expectations for the September Federal Reserve meeting.

According to the CME FedWatch Tool, traders are pricing in about a 60% chance of an interest rate hike at the Fed's policy meeting later this month, which could diminish gold's appeal.