Gold prices rose for a third consecutive day on Wednesday as a weaker US dollar and lower oil prices supported demand. Investors also waited for US employment data for clues about the future direction of interest rates.
After Asian markets opened, spot gold gained 1.4% and moved above $4,140 per ounce. Gold futures rose 1% and approached $4,198.
The weaker dollar made gold cheaper for buyers using other currencies, increasing its appeal in international markets.
Oil prices stabilized after sharp declines during the previous two sessions. Lower energy prices can reduce inflation risks and influence expectations for Federal Reserve policy.
Qatar said mediators had made progress in efforts to ease tensions between the United States and Iran. However, Tehran rejected US President Donald Trump’s claim that negotiations were already underway.
Kelvin Wong, a senior market analyst at OANDA, said gold and oil remain closely connected because energy prices strongly affect global inflation. He added that a clear path toward reducing regional tensions could support further gains in gold.
Traders now estimate a 59% chance that the Federal Reserve will raise interest rates at its September 15–16 meeting. That probability stood at 67% one day earlier.
Philadelphia Federal Reserve President Anna Paulson said policymakers had not made a final decision. She added that future conditions might still require another increase.
Markets are awaiting US private-sector employment data, scheduled for release at 3:15 p.m. Erbil time on Wednesday. The official July jobs report will follow on Friday.
Analysts at TD Securities expect gold to remain near current levels. The metal’s next move will depend on employment figures, oil prices, the dollar and developments in US-Iran relations. Softer labor data could weaken rate expectations and support gold, while strong figures may limit further gains. Investors will therefore remain cautious before entering larger positions.
