Updated
Updated · CNBC · Aug 4
Gold Climbs 0.6% to $4,078 as Brent Drops Over 4% and Rate-Hike Bets Ease
Updated
Updated · CNBC · Aug 4

Gold Climbs 0.6% to $4,078 as Brent Drops Over 4% and Rate-Hike Bets Ease

2 articles · Updated · CNBC · Aug 4

Summary

  • Spot gold rose 0.6% to $4,078.10 an ounce on Tuesday, while U.S. futures gained 1.1% to $4,134.60 as traders positioned for a softer inflation and rates outlook.
  • Brent crude fell more than 4% after Qatar said diplomacy over the U.S.-Iran conflict was continuing, easing energy-driven inflation fears even as shipping disruptions persisted.
  • That oil pullback helped trim pressure on the Fed to stay higher for longer, though markets still price about a 61% chance of a September rate hike after the last meeting held rates steady.
  • U.S. jobs data remain the next test for bullion after June JOLTS openings fell to 7.36 million; traders now await ADP figures Wednesday and nonfarm payrolls on Friday for clues on Fed policy.

Insights

Gold jumped after weak job openings, but is this a lasting breakout or just a short-term reaction before inflation and Fed policy push back?
If layoffs stay low and hiring still ticks higher, why did softer JOLTS data boost gold so quickly?