Gold Rises to Two-Week High as Dollar Weakens Ahead of US Jobs Data

Gold prices rose for the third straight session on Wednesday, reaching $4,133.83 per ounce in spot trading—the highest level in two weeks. U.S. gold futures gained 1% to $4,191.90 per ounce. The advance was driven by a decline in the U.S. dollar and falling oil prices, as market participants positioned ahead of key U.S. labor data expected to influence the Federal Reserve’s interest-rate trajectory.

U.S. Dollar and Inflation Signals

The U.S. dollar held near its lowest level in recent sessions, bolstering the appeal of dollar-denominated gold for holders of other currencies. Oil prices extended losses following sharp declines in the two prior sessions, easing inflation concerns and reducing expectations for further monetary tightening.

Market Expectations for Fed Policy

Traders scaled back forecasts for a Federal Reserve rate hike at its upcoming September 15–16 meeting: the probability of an increase dropped to 59%, down from 67% the previous day. Philadelphia Fed President Anna Paulson stated she remains open to all monetary policy scenarios, noting that rate hikes remain possible depending on incoming data.

Upcoming Labor Reports

Investors are closely watching today’s release of the U.S. private-sector employment report (ADP) and Friday’s July nonfarm payrolls report for fresh signals on the direction of monetary policy.

Other Precious Metals

Silver advanced 2% to $60.70 per ounce. Platinum rose 1% to $1,751.03 per ounce. Palladium increased 0.5% to $1,360.25 per ounce—the highest level in two months.

Geopolitical Developments and Market Commentary

Qatar announced that mediators are making progress toward ending hostilities between the United States and Iran, though Tehran denied U.S. President Donald Trump’s claim that direct talks had begun. Kelvin Wong, Senior Market Analyst at OANDA, remarked: “The relationship between gold and oil remains intact,” explaining that lower oil prices ease inflationary pressures. He added that a clear roadmap for de-escalation could support continued gains in gold prices.