Gold prices hovered near three-week highs on Wednesday, although fell slightly, as investors cut bets on a US rate hike in response to weak economic data.
Gold and dollar today
Gold futures fell 0.08% to $1,963 an ounce.
Meanwhile, spot gold contracts fell by 0.08% to $1,936 per ounce.
On the other hand, the dollar index rose by 0.06% to 103.537 points.
Gold at settlement yesterday
Gold futures prices rose at the end of trading, yesterday, Tuesday, to record their highest level in three weeks, following the release of economic data that indicated a slowdown in the labor market, and a decline in consumer confidence in the United States.
And futures prices for the yellow metal for December delivery increased by 0.95%, or the equivalent of $ 18.3, to $ 1965.1 an ounce, its highest level since the seventh of August.
And the data of the US Bureau of Labor Statistics showed, yesterday, Tuesday, that the number of available job opportunities decreased by 338 opportunities to 8.827 million jobs during the month of July, to record its lowest level in 28 months, which means that the labor market was affected by the tightening of monetary policy by the Federal Reserve.
Other data showed that US consumer confidence declined in August to 106.1 points, from a downwardly revised July reading of 114.0 points.
The index of short-term consumer expectations declined to 80.2 points from 88.0 points, but it still exceeded the level of 80 points, which historically indicates a possible recession during the next year.
Gold awaits important data
US Treasury yields fell to three-week lows and the dollar weakened on Tuesday, after data showed job creation fell in July, while consumer confidence fell more than expected in August. The decline in interest rates sharpens the demand for non-interest bearing gold.
Jim Wyckoff, a commodity markets expert at Kitco, said in a statement to CNBC that the decline in labor market indicators and consumer confidence suggests a decline in expectations for the Federal Reserve to raise interest rates as much as previously expected, which provides support for gold prices in the near term.
While Matt Simpson, chief analyst at City Index, said: “It is all about the US dollar and yields, and if US data continues to decline, we can expect gold prices to rise on the back of reduced bets on another rise in interest rates.”
Investors now await April-June GDP data and the preliminary ADP payrolls report later in the day, the personal consumption expenditures price index on Thursday, and the non-farm payrolls report on Friday.
The Federal Reserve is expected not to hold rates at its meeting next month, with markets pricing in 53% for another pause at the November meeting compared to 38% the day before, according to Investing Saudi Arabia's Fed rate tracker.
other metals
Spot silver fell 0.4% to $24.63 an ounce, but was hovering near a one-month high.
While platinum fell by 0.1% to $975.07, after rising to its highest level since July 19 in the previous session. Palladium fell 0.8 percent to $1,239.38.
