Gold prices rose for a third consecutive session on Wednesday, supported by a weaker US dollar and lower oil prices, as investors awaited upcoming US employment data for signals on the Federal Reserve’s interest-rate outlook.
Spot gold gained 1.3% to US$4,127.04 per ounce, while US gold futures rose 0.8% to US$4,184.40.
The softer dollar made dollar-denominated gold more attractive to holders of other currencies, while lower oil prices eased inflation concerns that often influence expectations for higher interest rates.
Meanwhile, Qatar said mediators were making progress in efforts to end the US-Iran conflict, although Tehran rejected US President Donald Trump’s claim that direct negotiations were already underway.
“Gold’s relationship with oil remains intact because oil prices have a significant impact on global inflation. If we see a clear roadmap for further de-escalation, gold prices could move higher,” said Kelvin Wong, senior market analyst at OANDA.
Traders are now pricing in a 59% probability of a Federal Reserve interest-rate hike at its September 15-16 meeting, down from 67% a day earlier.