NEW YORK: Gold climbed to a three-week peak on Tuesday as the dollar and Treasury yields slipped after weaker labour market readings cast doubts over the chances of another rate hike by the Federal Reserve.
Spot gold was up 0.9% at $1,935.95 per ounce as of 11:39 a.m. EDT (1539 GMT). US gold futures also rose 0.9% to $1,964.20.
The dollar fell against its rivals, reversing earlier gains, after data showed that US job openings fell in July. The benchmark 10-year Treasury yields also ticked lower.
The downbeat Job Openings and Labor Turnover Survey (JOLTS) and consumer confidence reports suggest the Fed may not raise rates as much as previously anticipated, and that’s helping gold along with some short-covering, said Jim Wyckoff, senior market analyst at Kitco.
Investors now await the US personal consumption expenditures price index due on Thursday and nonfarm payrolls on Friday for further clues on the interest rate trajectory.
According to the CME FedWatch tool, traders now see an 86% chance of the Fed leaving rates unchanged at its September meeting, up from 78% before the data.
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