Precise Investors Editorial Team
Spot gold jumped 2.4 per cent to $4,175.53 per ounce
Gold rose for a third straight session on Wednesday, hitting a one-month high on lower oil prices, while investors awaited U.S. jobs data for clues on the interest-rate outlook.
Spot gold jumped 2.4 per cent to $4,175.53 per ounce by 0640 GMT, its highest since July 7. U.S. gold futures gained 2 per cent to $4,235.30.
The U.S. dollar traded subdued, making dollar-priced metals more attractive to holders of other currencies.
Crude oil extended declines after steep falls in the previous two trading sessions. Lower oil prices can ease inflation concerns that shape expectations of higher interest rates.
Qatar said mediators were making progress in efforts to end the U.S.-Iran war, although Tehran has denied U.S. president’s assertion that talks are already underway.
Gold’s relation with oil is still intact as oil prices have a tremendous impact on the global economy in terms of inflationary pressure. If we get a very clear roadmap to further de-escalation in tensions, gold prices could move higher, said Kelvin Wong, a senior market analyst at OANDA.
Gold tends to lose its appeal in a high interest-rate environment despite its status as an inflation hedge, as it yields no interest.
Traders are now pricing in a 59 per cent probability of a U.S. central bank interest rate hike at the central bank’s September 15-16 meeting, down from 67 per cent a day earlier.
Federal Reserve Bank of Philadelphia President Anna Paulson said she was keeping an “open mind” about what lies ahead for monetary policy in an outlook that could call for higher rates.
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