Gold climbs for third straight session on weaker dollar

August 05, 2026 (MLN): Gold prices climbed for a third consecutive session on Wednesday, supported by a weaker U.S. dollar and lower oil prices, as investors awaited key U.S. labour market data for fresh signals on the Federal Reserve's interest-rate path.

Currently, spot gold is slightly up 2.51% to $4,155.47 an ounce as of [2:58 pm] PST, according to data reported by Mettis Global.

A softer dollar made gold more affordable for buyers using other currencies, while easing oil prices reduced inflation concerns that had previously strengthened expectations of tighter monetary policy, according to CNBC.

Market sentiment also improved after Qatar said mediation efforts to end tensions between the United States and Iran were making progress. However, Iran rejected U.S. President Donald Trump's claim that negotiations were already underway.

According to Kelvin Wong, Senior Market Analyst at OANDA, oil prices continue to influence gold through their impact on global inflation expectations. He said a clearer path toward de-escalation in geopolitical tensions could provide further support to bullion prices.

Money markets now assign a 59% probability of a Federal Reserve interest-rate increase at its September 15-16 meeting, down from 67% a day earlier.

Gold, which does not generate interest income, generally faces pressure when interest rates rise, reducing its appeal relative to yield-bearing assets.

Meanwhile, Federal Reserve Bank of Philadelphia President Anna Paulson said she remained open-minded on the policy outlook, noting that incoming economic data could still justify higher interest rates.

Investors are now awaiting the ADP private employment report later on Wednesday, followed by the closely watched U.S. nonfarm payrolls data for July on Friday, both of which are expected to shape expectations for the Fed's next policy move.

Analysts at TD Securities said they expect gold prices to remain largely range-bound around current levels in the near term.

Among other precious metals, spot silver advanced 1.9% to $60.64 per ounce. Platinum gained 1.4% to $1,758.35, its highest level since mid-June, while palladium rose 0.9% to $1,365.62, extending gains for a second consecutive session.

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