Reduced probability of a September Fed rate hike is keeping bullion prices supported despite uncertainty about the Fed's next move
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"Traders are now pricing in only a 40% chance of an interest rate hike at the Fed's September meeting, down from about 54% seen a week before, according to the CME FedWatch Tool."
"US data showed the economy unexpectedly lost jobs in July, while employment gains reported for the previous two months were revised sharply lower. The weaker labour market data also altered expectations for the Fed's September policy decision, with futures markets now pricing in less than a 50% chance of a rate hike at the September 15-16 Federal Open Market Committee meeting. Gold typically benefits from a lower interest rate environment as the non-yielding asset becomes more attractive compared with income-generating investments."
"Gold bulls have also toned down their expectations of a September rate rise as chances of this have now been reduced to 59% from 67% just the previous day. Though higher rates usually tend to dampen interest in gold due to the non-interest bearing nature of the metal, doubts about the Fed's next move have kept bullion prices afloat."