Gold rose for a third straight session on
Wednesday, helped by a softer dollar and lower oil prices, while
investors awaited U.S. jobs data for clues on the interest-rate
outlook.
Spot gold was up 1.3 per cent at $4,127.04 per ounce, as of
0253 GMT. U.S. gold futures rose 0.8 per cent to $4,184.40.
The U.S. dollar remained subdued, making greenback-priced
metals more attractive to holders of other currencies.
Oil steadied after steep falls in the previous two sessions.
Lower oil prices can ease inflation concerns that often feed
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
Donald Trump’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.
Traders are now pricing in a 59 per cent probability of a Federal
Reserve interest rate hike at the central bank’s September 15-16
meeting, down from 67 per cent a day earlier.
Gold tends to lose its appeal in a high interest-rate
environment despite its status as an inflation hedge, as it
yields no interest.
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.
Traders were looking ahead to the ADP employment report due
later in the day and the July payrolls report scheduled for
Friday.
Analysts at TD Securities said in a note that they expect
gold to remain range-bound near current levels.
Spot silver gained 1.9 per cent to $60.64 per ounce and
platinum climbed 1.4 per cent to $1,758.35, its highest level
since mid-June. Palladium rose 0.9 per cent to $1,365.62, up for
a second straight session.
Published on August 5, 2026
