Gold prices held near $4,400 per ounce on Thursday, after rebounding about 1% the day before. At 20:34 ET (00:34 GMT) XAU/USD was little changed at $4,384.21, while Gold Futures rose 0.3% to $4,429.21. Silver (XAG/USD) fell 0.1% to $65.26 an ounce and platinum (XPT/USD) was little changed at $1,760.62. The US Dollar Index was steady at 99.57.
The rebound was driven by a weaker dollar and a sharp rise in the Japanese yen, which revived discussion of possible currency intervention. Gold rose as much as 1.6% on Wednesday as the greenback fell following the yen’s appreciation.
President Donald Trump signaled that the latest US strikes on Iran would likely be short‑lived, effectively ruling out a prolonged military campaign in the Middle East. His remarks dampened the recent oil rally and reduced inflation concerns that had been weighing on bullion.
Federal Reserve Bank of New York President John Williams added that there is evidence U.S. inflation is continuing to ease as the impact of tariffs fades and higher energy prices are not spreading into other services. This assessment, together with softer labour market data – ADP reported that private‑sector firms added 38,000 jobs in August – further tempered expectations for aggressive Fed tightening.
The article notes that higher interest rates generally weigh on gold because the metal does not generate interest, and that a softer inflation outlook reduces pressure on the Fed to raise rates further. It also references a more hawkish speech by Fed Chair Kevin Warsh at the Jackson Hole symposium last Friday, which had previously lifted expectations of rate hikes ahead of the Fed’s policy meeting in about two weeks.