NEW YORK / RankWire.AI / – Gold increased by more than 1% on Thursday, rebounding from its lowest point in over three weeks. The spot price of gold rose 1.1% to $4,434.70 per ounce by 04:25 GMT. Meanwhile, U.S. gold futures climbed 1.5% to reach $4,480.10. During the session, the dollar index declined, and U.S. Treasury yields decreased from recent multi-year highs. This rebound followed notable volatility in bullion prices during Wednesday’s trading activity.
On Wednesday morning at 00:17 GMT, gold dipped to $4,304.01 an ounce, marking a 0.6% decrease. This level was the weakest since August 7. Concurrently, December U.S. gold futures fell 1% to $4,350.80 during the early decline. However, prices reversed course later in the day. By 17:57 GMT, spot gold reached $4,376.41, and December futures closed 0.4% higher at $4,414.60. The upward momentum persisted into Thursday’s trading session.
The recent gains were driven by market expectations surrounding U.S. interest rates and the release of new economic data. Traders currently assign a 62% chance of a rate hike in September. The Federal Reserve is scheduled to hold its upcoming policy meeting on September 15 and 16. Throughout the week, gold remained sensitive to fluctuations in the dollar and government bond yields. Thursday’s rally lifted bullion more than $130 above Wednesday’s intraday low.
Gold recovers after touching three-week low
Market focus also shifted to the upcoming key U.S. labor market report. The U.S. Bureau of Labor Statistics will release the August Employment Situation report on Friday, September 4, at 8:30 a.m. Eastern Time. The report will detail nonfarm payrolls, the unemployment rate, and other employment indicators. This release comes after several recent economic reports that have triggered significant moves in precious metals, currencies, and government bonds.
Other precious metals also posted gains on Thursday, rebounding from earlier losses. Spot silver increased by 1.2% to $66.08 an ounce. Platinum rose 1% to $1,777.79, while palladium gained 0.8% to $1,356.50. On Wednesday, silver declined to $63.60 during early trading, platinum fell to $1,722.23, and palladium dropped to $1,292.21 amid overall weakness in the precious metals market.
Precious metals regain strength after decline
Gold’s Thursday price level was approximately 3% higher than the intraday low recorded the previous day. U.S. gold futures also showed a strong recovery from Wednesday’s early levels, moving from $4,350.80 during the selloff to $4,480.10 on Thursday. These latest gains pushed gold above $4,400 after a brief dip to the lowest since early August. Silver, platinum, and palladium also traded above their lows from Wednesday.
Several important U.S. economic reports are due in September, including producer price data on September 10 and consumer price figures on September 11. The Federal Reserve’s two-day policy meeting begins on September 15 and concludes on September 16. Gold entered Thursday with renewed momentum following a volatile two-day period. The broader precious metals complex also moved higher, offsetting some of the earlier losses experienced during the week.