FX.co ★ Gold Holds Gain as Dollar, Treasury Yields Retreat

Gold hovered near $4,400 an ounce on Thursday, holding on to gains from the prior session as a softer US dollar and lower Treasury yields offered support. New York Fed President John Williams noted that there is ongoing evidence of easing inflation as the impact of tariffs diminishes, adding that higher energy prices have not yet fed through to broader services inflation. Data released on Wednesday also showed a slowdown in US private sector job growth in August.

Even so, markets are still pricing in roughly a two-thirds probability of a Federal Reserve rate hike later this month, following Chair Kevin Warsh’s hawkish comments on Friday. In energy markets, oil’s recent rally paused after President Donald Trump said the latest strikes on Iran would be short-lived, while signaling that the US remains prepared to take further action. The remarks helped temper inflation fears and offered additional support to gold.