Fundamental analysis
31 August, 2021
Gold prices rose back towards the previous session’s four-week high on Tuesday, supported by a weaker dollar and a fall in U.S. Treasury yields, as investors awaited August U.S. non-farm payrolls data due later this week. Making gold less expensive for other currency holders, the dollar index slipped to a more than three-week low. The benchmark U.S. 10-year yield fell to a one-week low. Following dovish remarks from Federal Reserve chief Jerome Powell at the Jackson Hole symposium last week, the spotlight shifts to Friday’s U.S. jobs report, which could shed more light on the Fed’s tapering strategy. The market is expecting an increase of 728,000 jobs, unemployment to fall to 5.2% from 5.4%, and average hourly earnings to rise 0.4% month-on-month.
