Gold rises from one-month low

Gold prices rebounded from a one-month low, supported by a weaker dollar  

Gold prices rose on Wednesday's volatile trading, rebounding from a one-month low as a weaker dollar provided support, while investors assessed geopolitical developments in the Middle East and the outlook for US monetary policy.

The precious metal came under pressure earlier in the session as the yield on 10-year US Treasury notes rose to its highest level since November 2023. Gold later recovered as the debt market partially eased from its selling pressure.

Although markets still see a 64% probability of a Federal Reserve rate hike this month, ADP data showing a slowdown in US private-sector hiring in August revived concerns over weakness in the labor market.

Separately, the Federal Reserve’s Beige Book showed that economic activity was growing slowly, with weaker hiring and continued price pressures, a development that could discourage monetary policymakers from raising interest rates.