Gold rises as Fed rate cut bets pressure dollar, yields
Spot gold rose 0.2 per cent to US$3,380.61 per ounce as at 8.52 am. US gold futures also gained 0.2 per cent to US$3,434.30.
The US dollar index fell for the third straight session on Tuesday, making gold more affordable for holders of other currencies. Meanwhile, the yield on the benchmark 10-year Treasury note dropped to a three-week low.
On Friday, US President Donald Trump fired Erika L McEntarfer, the commissioner of the US Bureau of Labor Statistics, after data showed employment growth was weaker than expected last month.
US employment growth was softer than expected in July, while the non-farm payrolls counts for May and June were revised down by a massive 258,000 jobs, suggesting a sharp deterioration in the labour market conditions.
San Francisco Fed Bank president Mary Daly said on Monday that given mounting evidence that the US job market is softening and no signs of persistent tariff-driven inflation, the time is nearing for rate cuts.
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According to the CME FedWatch tool, traders now see a 94.4 per cent chance of a September rate cut.
Gold, traditionally considered a safe-haven asset during political and economic uncertainties, tends to thrive in a low-interest-rate environment.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.18 per cent to 954.8 tonnes on Monday from 953.1 tonnes on Friday.
Elsewhere, spot silver rose 0.1 per cent to US$37.41 per ounce, platinum gained 0.1 per cent to US$1,330.17 and palladium eased 0.1 per cent to US$1,204.87. REUTERS
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