Spot gold gained 0.24% to $2,395.00 per ounce and U.S. gold futures added 0.14% to $2,435.10
Gold prices held nearly steady on Wednesday as traders awaited further indications to gauge the size of the Fed’s likely September interest rate cut.
Spot gold gained 0.24% to $2,395.00 per ounce, as of 0638 GMT. U.S. gold futures added 0.14% to $2,435.10.
The dollar index gained 0.3%, making the greenback-priced bullion less affordable for overseas buyers. The 10-year U.S. Treasury yield also rose.
It is a very noisy market at the moment, gold is not moving as much on its own fundamentals due to volatility in broader markets, currency markets in particular, according to Kyle Rodda, a financial market analyst at Capital.com.
Traders have altered their rate cut expectations following the soft jobs report last week, with almost 105 bps of reductions expected by year-end.
However, markets are pricing in a 65% probability of the Federal Reserve reducing rates by 50 basis points in September, according to CME FedWatch tool, compared with 85% a day ago.
Bullion is considered a hedge against geopolitical and economic uncertainties and tends to thrive in a low interest rate environment.
Gold will be supported “by ongoing Middle East tensions and lingering global recession concerns, as markets await further economic data for clarity on U.S. conditions,” according to IG market strategist Yeap Jun Rong.
Elsewhere, China’s exports grew at their slowest pace in three months in July, missing expectations and adding to worries about the outlook for the vast manufacturing sector.
Spot silver rose 0.24% to $27.1055 per ounce, platinum gained around 1% to $918.81 and palladium gained 0.84% to $882.01.
