Gold rebounds over 1pct as US dollar, yields pull back from highs

New York: Gold surged over 1% on Wednesday as US dollars and Treasury yields retreated from recent peaks, as investors looked forward to US payrolls data for insights on the Federal Reserve's policy stance. Spot gold climbed 1.1% to $4,376.41 an ounce by 1:57 p.m. EDT (17:57 GMT), rebounding from its lowest level since August 7 earlier in the day.

US gold futures for December delivery rose 0.4% to settle at $4,414.60. David Meger, director of metals trading at High Ridge Futures, attributed the bounce to a slight dip in yields during the day. The energy complex and yields continue to be crucial factors for the gold market. US Treasury yields softened after peaking at multi-year levels as oil prices declined and investors assessed the latest economic data.

Federal Reserve Bank of New York President John Williams stated that long-term bond yields are rising due to a robust economy, not inflation concerns. While US private payroll growth fell below forecasts in August, gold prices remained relatively stable as traders anticipated Friday's nonfarm payrolls report. ADP's statistics may influence the nonfarm report, but nonfarm is the most significant indicator for markets.

Traders now estimate a 64% probability of a rate hike at the Fed's upcoming meeting, according to the CME FedWatch Tool. The Dutch central bank recently transferred 86 metric tons of gold from New York and Ottawa to London to enhance tradability and crisis readiness. Silver rose 1.2% to $65.03 per ounce, platinum increased 0.9% to $1,756.39, and palladium climbed 3.18% to $1,352.74.