Gold jumps 2.3% to $4,488.54 as Fed Governor Waller dampens rate hike expectations
Spot gold reached a new session high after traders reduced September rate increase probabilities following comments from Federal Reserve Governor Christopher Waller.
Gold prices surged more than 2% on Thursday as market participants scaled back forecasts for an interest rate increase at the upcoming Federal Reserve meeting. Spot gold climbed 2.3% to $4,488.54 per ounce, marking its highest level since August 28. U.S. futures settled 2.8% higher at $4,539.90. The rally followed remarks by Governor Christopher Waller regarding the potential for steady rates if data confirms cooling inflation pressures. Traders now assign a 54% probability to a September rate hike, down from 62% earlier in the week. Gold's rise was supported by falling Treasury yields and a weaker U.S. dollar, which reduced the opportunity cost of holding non-yielding bullion. Senior market strategist Bob Haberkorn noted that traders believe the Fed might conduct one rate hike but see limited room for further increases thereafter. Investors are now anticipating August payroll data to be released this Friday.
