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The Financial Ways
The Financial Ways
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Gold & Precious Metals

Gold Holds Ground as Rate Hike Bets Soften

Gold and silver prices edged higher in late Thursday trading, finding a foothold as investors recalibrated expectations for an October Federal Reserve interest rate hike. Despite this support, bullion gains remained capped by a formidable U.S. dollar and Treasury yields that recently touched multi-decade highs before retreating.

Gold Holds Ground as Rate Hike Bets Soften

Spot gold traded at $4,159.11 an ounce, a marginal 0.10% increase, while silver rose 0.18% to $60.980. The modest recovery followed a volatile session on Wall Street, where the S&P 500 managed a 0.19% gain after Treasury yields cooled off during afternoon hours. In contrast, European markets faced sharper declines, with the FTSE 100 and CAC 40 shedding over 1.5% as bond market turbulence soured risk appetite.

Economic data released throughout the day provided a mixed backdrop for the Federal Reserve’s policy path. Initial jobless claims dipped to 197,000, signaling a resilient labor market, while ISM manufacturing reports suggested that persistent inflation pressures remain a primary concern. With the 10-year Treasury note yield hovering near 5.30%, all eyes are now fixed on Friday’s nonfarm payrolls report. A strong employment figure could reignite pressure on gold by strengthening the dollar, whereas weak data might offer the Fed room to pause.

Geopolitical tensions in the Strait of Hormuz continue to underpin safe-haven demand, even as oil prices softened. Brent crude slipped below $100 per barrel following an uptick in U.S. inventories. Technically, gold bulls are looking to breach resistance at $4,190.00 to sustain upward momentum, while bears target a breakdown below $4,136.44.

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