Gold and platinum rise as weaker dollar and softer Fed outlook support metals

  • Gold rose to $4,484.20 and platinum futures climbed above $1,800 as a weaker dollar, lower Treasury yields and softer Federal Reserve rate expectations supported precious metals.
  • The Australian dollar broke above $0.72 to a four-month high, while markets priced a 58% chance of an Australian rate hike this month, up from 49%.
  • U.S. companies added 38,000 jobs in August and traders awaited nonfarm payrolls; industrial platinum demand is expected to increase 9% to 2.24 million ounces this year.

Gold extended its rebound in early Asian trading, rising 0.3% to $4,484.20 a troy ounce, while platinum futures climbed above $1,800 after recovering from a two-week low. A weaker U.S. dollar, lower Treasury yields and less hawkish Federal Reserve commentary supported precious metals by reducing expectations for further U.S. rate hikes. The Australian dollar also moved above $0.72 to a four-month high after stronger second-quarter Australian GDP increased expectations that the Reserve Bank of Australia could resume tightening. Markets priced a 58% chance of an Australian rate increase this month, up from 49%, while a November hike was fully priced in. Investors awaited U.S. nonfarm payrolls after companies added 38,000 jobs in August, below expectations, while renewed Gulf fighting and higher oil prices kept inflation risks in focus. Industrial platinum demand is expected to rise 9% this year to 2.24 million ounces, and Valterra Platinum identified China’s expanding hydrogen-truck sector as a potential source of additional demand.

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