Gold Surges On Weaker Dollar, Lower Yields

(RTTNews) - Gold prices were sharply higher on Thursday as U.S. Treasury yields eased from multi-year highs and oil steadied after a three-day rally, helping ease inflation and interest-rate concerns.

Spot gold jumped 1.1 percent to $4,435.98 an ounce while U.S. gold futures were up 1.6 percent at $4,483.44 an ounce.

After U.S. ADP labor figures came in below expectations, new hopes have arisen that signs of weakness in the labor market will lead the Federal Reserve to refrain from raising interest rates later this month.

New York Fed President John Willliams said in an interview with CNBC that inflation expectations remain well anchored and there is no "unusual" broadening of the effects of higher energy prices, soothing investor concerns over an imminent Fed rate hike at the upcoming policy meeting scheduled for September 15-16.

Remarks by Federal Reserve Governor Christopher Waller will be in the spotlight later today. Waller said in July that higher rates may be needed in the near term if inflation data remained hot.

The U.S. dollar index pulled back sharply ahead of the August jobs report scheduled for Friday, which includes both public and private sector jobs.

Economists expect employment to climb by 55,000 jobs in August after a decline of 23,000 jobs in July. The unemployment rate is expected to tick up to 4.2 percent from 4.1 percent.

Oil prices steadied after a three-day rally after U.S. President Donald Trump said renewed attacks on Iran would be short-lived while reiterating his claim that the U.S. controls the Strait of Hormuz, a vital route for global crude shipments. Also, U.S. officials have signaled robust energy flows through the key waterway.

According to CNN, the American military escorted 40 vessels through the waterway on Tuesday carrying 18 million barrels of oil.