NEW YORK / RankWire.AI / – Gold surged more than 1% on Thursday, rebounding after reaching its lowest point in more than three weeks. Spot gold increased by 1.1% to $4,434.70 per ounce by 04:25 GMT, while U.S. gold futures climbed 1.5% to $4,480.10. During the session, the dollar weakened, and U.S. Treasury yields moved lower from recent multi-year highs. This rally followed significant fluctuations in bullion prices seen during Wednesday trading.
On early Wednesday, gold had dipped to $4,304.01 an ounce, marking a 0.6% decline at 00:17 GMT, which represented its weakest level since August 7. Meanwhile, December U.S. gold futures also fell 1% to $4,350.80 amid the initial drop, but prices subsequently reversed course. By 17:57 GMT, spot gold reached $4,376.41, and December futures closed 0.4% higher at $4,414.60. The upward trend persisted into Thursday’s trading session.
The recent movement was driven by market focus on U.S. interest rate expectations coupled with new economic data. Traders are currently pricing in a 62% chance of a rate hike in September. The Federal Reserve is scheduled to conduct its upcoming policy meeting on September 15 and 16. Throughout the week, gold has remained highly sensitive to changes in the dollar and government bond yields, and Thursday’s gains pushed bullion more than $130 above Wednesday’s intraday low.
Gold recovers after hitting three-week low
Market attention also shifted towards the upcoming major U.S. labor market report, as the U.S. Bureau of Labor Statistics plans to release the August Employment Situation on Friday, September 4, at 8:30 a.m. Eastern Time. The report will include nonfarm payrolls, the unemployment rate, and other employment indicators, following several economic releases that have coincided with notable movements across precious metals, currencies, and government bonds.
Other precious metals also rebounded on Thursday after experiencing declines earlier in the week. Spot silver increased 1.2% to $66.08 an ounce, platinum gained 1% to $1,777.79, and palladium rose 0.8% to $1,356.50. On Wednesday, silver had fallen to $63.60 in early trading, platinum dropped to $1,722.23, and palladium declined to $1,292.21, as the broader precious metals market faced downward pressure.
Precious metals regain momentum
Thursday’s gold price level was roughly 3% higher than the intraday low recorded the day before, with U.S. gold futures also showing a strong bounce-back from Wednesday’s early levels. Futures moved from $4,350.80 during the selloff to $4,480.10 on Thursday, bringing gold back above $4,400 after a brief slide to its lowest point since early August. Additionally, silver, platinum, and palladium all traded above their Wednesday lows.
Several upcoming U.S. economic reports remain scheduled for September, including producer price data on September 10 and consumer price figures on September 11. The Federal Reserve’s two-day policy meeting begins on September 15 and concludes the following day. Thursday’s session marked a recovery for gold following a volatile two-day period, with the broader precious metals complex also moving higher, reversing part of earlier losses this week.