Gold climbs to $4,437 as dollar, yields retreat ahead of US jobs data

September 03, 2026 (MLN): Gold prices edged higher on Thursday as a softer U.S. dollar and retreating Treasury yields lent support to the metal, with markets now turning their attention to Friday's U.S. nonfarm payrolls report for fresh clues on the Federal Reserve's next policy step.

Currently, spot gold is up 2.58% to $4,437.6 an ounce as of [09:43 am] PST, according to data reported by Mettis Global.

The dollar came under pressure while Treasury yields pulled back from multi-year highs, a combination that typically makes gold cheaper for buyers holding other currencies, according to CNBC.

Attention now shifts to Friday's nonfarm payrolls release, the week's key data point for gauging the health of the U.S. labour market.

The setup follows Wednesday's ADP National Employment Report, which showed private payrolls in the U.S. rose at a moderate pace in August.

According to the CME FedWatch Tool, markets are currently assigning a 62% probability to a U.S. rate hike this month.

A separate Fed report released Wednesday painted a mixed picture of the economy, describing modest growth in activity, a slight rise in employment, and moderate price increases in recent weeks.

Policymakers are unlikely to draw a clear signal from the report as they head into their September 15–16 meeting to decide on rates.

Gold is widely viewed as a hedge against inflation, though higher interest rates raise the opportunity cost of holding an asset that generates no yield.

On the geopolitical side, aides to U.S. President Donald Trump are reportedly working to prevent the Iran conflict from escalating ahead of November's midterm elections, seeking to limit potential losses for Republicans at the polls.

Elsewhere in precious metals, spot silver rose 0.6% to $65.74, platinum climbed 0.6% to $1,770.88, and palladium firmed 0.6% to $1,354.00.

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