Gold Stalls Near $4,500 as Traders Eye US Jobs Data
Gold prices have stalled near $4,500 as traders await the release of the US Nonfarm Payrolls (NFP) report. The highly anticipated data will provide cues about the Federal Reserve's policy path amid receding bets of a September rate hike.
The NFP report has become crucial in influencing USD price dynamics and providing impetus to non-yielding bullion, according to TD Securities. The bank notes that while the recent hawkish tone from the Fed has weighed on precious metals, 'we do not anticipate material downside' as the landscape for gold has improved amid a renewed dollar debasement theme.
US Governor Christopher Waller stated that he leans towards keeping interest rates steady at the September FOMC meeting, provided there are no surprises from upcoming inflation data. This statement pushed US bond yields and the USD sharply lower, assisting gold's recovery from a four-week low.
However, inflation risks stemming from higher energy prices leave the door open for a rate hike later this month. Crude oil prices have surged to near their highest levels since July 24 amid renewed US-Iran hostilities and clashes over the Strait of Hormuz.