Gold rises as dollar and yields ease, with US nonfarm payrolls report in spotlight

Spot gold climbed 0.5%, reaching $4,409.97 an ounce by 0219 GMT on Thursday, recovering from a level close to a one-month trough hit in the previous session. Business Recorder reported that the gain coincided with a softer dollar and lower Treasury yields, a mix that lowers the cost of dollar-denominated metals for buyers using other currencies. US gold futures added 0.9% to $4,455.30, while spot silver, platinum and palladium each rose 0.6%.

Traders are waiting for US nonfarm payrolls data due on Friday, which may guide how they read the Fed's upcoming policy path. An ADP report showed private employers added staff moderately in August, while markets assign a 62% chance to a rate increase this month, per the CME FedWatch Tool. A mixed Fed report published on Wednesday pointed to modest activity growth and slight job gains, and may do little to sway policymakers before their September 15 to 16 meeting on rates.

Tastylive's head of global macro, Ilya Spivak, said a weaker jobs report that reduces September rate hike bets could lift gold, and that a move above $4,400 could point toward $4,500 and then $4,700. Gold is usually regarded as an inflation hedge, yet higher interest rates raise the cost of holding an asset that pays no yield.