Gold extended its rebound on Thursday, climbing above $4,400 an ounce after staging a defence of the key $4,300 support level. Spot gold rose 0.9% to $4,429.23, while gold futures gained 1.4% to $4,474.75. The move followed a 1.1% bounce to $4,376.41 in the previous session, when gold recovered from its lowest level since August 7.
The rally was driven mainly by a softer US Dollar Index, which slipped 0.2% to 99.39, and by Treasury yields retreating from recent highs. A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the appeal of interest-bearing assets versus the non-yielding metal. Silver also rose 0.6% to $65.75 an ounce, and platinum added 0.8% to $1,774.92.
Comments from Federal Reserve Bank of New York President John Williams reinforced the softer tone. Williams said inflation is continuing to ease as tariff effects fade, and that higher energy prices are not spreading into other services. That contrasted with the more hawkish speech delivered by Fed Chair Kevin Warsh at Jackson Hole last Friday, which had raised expectations for a rate hike at the upcoming policy meeting.
Labor market data added to the case for a less aggressive Fed. The ADP employment report showed US companies added just 38,000 jobs in August, a signal of cooling hiring. Traders now focus on Friday’s nonfarm payrolls report, which is likely to determine whether gold can maintain its rebound. Weekly unemployment claims were expected at 205,000, up from 203,000, and the ISM Services PMI was slated for release at 3:00 p.m., with Fed officials Hammack and Goolsbee also scheduled to speak.
Oil-driven inflation concerns remained in the background. Renewed US strikes on Iran had pushed crude prices above $90, but President Trump said the strikes would likely be short-lived, helping ease some inflation fears. Gold’s chart structure kept $4,300 as the critical short-term support zone. A push through $4,450 could open a move toward $4,600, while a decisive loss of $4,300 would expose $4,220 and then $4,150.
