The US Dollar Index snapped a four-day losing streak and recorded a 0.17% gain.
Gold prices fell on Thursday but stabilised above the $2,500 level as the US dollar recovered ahead of a speech from the Federal Reserve chairman that may provide further insight into the interest rate outlook.
In the UAE, gold prices fell by AED0.75, dropping to AED303 for 24-karat gold and AED280.5 for 22-karat gold, while 271.5 for 21-karat gold and AED232.75 for 18-karat gold.
Globally, spot gold was down 0.45% to $2,501.64 as of 5:13 GMT after hitting an all-time high of $2,531.60 on Tuesday, while US gold futures were down 0.33% to $2,539.
The US dollar snapped a four-day losing streak
Gold prices fell as the U.S. Dollar Index snapped a four-day losing streak to rise 0.17%. U.S. Treasury yields also edged higher. The dollar’s recovery came after the release of minutes from the Fed’s July meeting showed officials leaning strongly toward a rate cut next month.
Traders are fully pricing in a rate cut from the Federal Reserve at its September meeting, with a 62% chance of a 25 basis point cut, according to the CME FedWatch tool.
Investors are now awaiting the start of the Jackson Hole Economic Symposium on Thursday and a speech by Federal Reserve Chairman Jerome Powell on Friday. The market is also awaiting initial data on jobless claims, which is scheduled to be released at 12:30 GMT. Any further softening in jobless claims could send gold prices higher after the payroll data was recently revised downward.
The US labor market weakens
The Bureau of Labor Statistics released its revised annual benchmark review of employment, revealing that employers added 818,000 fewer jobs than reported in the year that ended in March. That’s the biggest downward revision since 2009, suggesting the labor market was not as robust as initially expected. But job growth was still historically strong. Economists and analysts say the revision will likely put more pressure on the Federal Reserve to ease monetary policy.
Related article: U.S. employment data leads to oil prices dropping, demand outlook unclear
Other precious metals
Precious metals markets remained mixed as gold prices retreated from record highs. Spot silver fell 0.67% to $29.43 and platinum was down 0.18% to $961.92. However, palladium rose 0.13% to $952.59 and copper was steady at $4.18.
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