Commodity Capsule: The yellow metal is aided by a weaker dollar as softer-than-expected US economic data spurred bets that the Federal Reserve will have limited headroom to keep raising rates.

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Bullion had a strong run-up over the past week, as traders grew more uncertain over the US economic outlook.

Further gains in gold prices were clouded by the prospect of US rates remaining higher for longer; Eyes on a a slew of economic readings this week.

 The dollar steadied from recent losses on Wednesday. The index dropped to 103.50 level in the previous session, dropping from three-month high levels last week.

Dollar and treasury yields fell sharply tracking weaker-than-expected job openings and consumer confidence data.

Focus is now squarely on a revised reading on second-quarter economic growth, Personal consumption expenditures data on Thursday, while August nonfarm payrolls are due on Friday.

Any signs of cooling in US inflation and labor market activity gives the Fed less impetus to raise interest rates further. But given that the central bank has signaled that US rates will remain higher for longer, gold is expected to see limited relief until the central bank decides to begin trimming rates next year.

LME copper dips in cautious trade ahead of key data

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