Gold Price Today, September 3: Gold prices ticked higher on Thursday, holding above the USD 4,400-an-ounce mark, after rising around 1 per cent in the previous session. The gains were supported by weakness in the US dollar and Treasury yields, which increased the appeal of the non-yielding precious metal.
Gold, silver prices today
As of 6:30 am, spot gold was up 0.4 per cent, or USD 16, at USD 4,405.70 an ounce. The precious metal traded in a narrow range during Thursday’s session so far.
Spot silver also edged higher, rising 0.2 per cent to trade above USD 65 an ounce.
In the domestic market, gold and silver futures were not trading at the time of writing. On Wednesday, gold and silver futures on the Multi Commodity Exchange (MCX) settled at Rs 1,52,544 per 10 grams and Rs 2,30,100 per kg, respectively.
Gold Price Today: US dollar, Treasury yields support bullion
Supporting gold prices, the US dollar against a basket of six major currencies traded slightly weaker at 99.55.
Further support came from weakness in the US 10-year Treasury yield. A decline in Treasury yields reduces the opportunity cost of holding non-yielding gold, while a weaker US dollar makes the precious metal cheaper for overseas buyers. Together, these factors can boost demand for gold and support prices.
Gold Price Today: Fed rate outlook in focus
Meanwhile, expectations around the Federal Reserve’s interest-rate path also offered support to bullion prices.
The CME FedWatch Tool showed expectations for a rate hike at the Federal Reserve’s September FOMC meeting slipping to around 62 per cent, from around 67 per cent in the previous session.
Cooling energy prices have helped ease concerns around inflationary pressures, potentially reducing expectations for higher interest rates. Lower rate expectations can weigh on bond yields and improve the appeal of non-yielding assets such as gold.
Gold Price Today: US economic data in focus
Market participants will now be watching a series of US economic data releases for further cues on the Federal Reserve’s monetary policy outlook.
Attention will be on US jobless claims data due later on Thursday, followed by employment and unemployment data due on Friday.
The data could provide fresh signals on the strength of the US economy and influence expectations around the Fed’s upcoming policy decisions, with potential implications for the dollar, Treasury yields and gold prices.
