Gold reshine on positive market sentiment, softer jobs data

Gold prices have rebounded from their weekly lows, marking a 0.43% increase, as traders digest the latest US jobless claims report.

The Federal Reserve’s divided stance and the anticipation of Chairman Powell’s speech keep investors on edge, with a dovish tilt currently in the lead.

Geopolitical tensions following the Hamas attack and Israeli military actions contribute to the safe-haven asset’s appeal. Gold price rebounds in early morning trading during the North American session, bounces from weekly lows of $1944.80, prints solid gains of 0.43%, and exchanges hands at $1958.00.

Gold climbs to $1958 amid mixed Fed signals and a cautious bond yield recovery. Market sentiment is positive, with Wall Street shrugging off a solid employment report. US Treasury bond yields remain adrift to interest rate expectations and the Federal Reserve’s commentary.

The split among Fed officials between saying rates are already restrictive and the need for additional hikes is growing. The doves appear to have the upper hand so far unless next week’s inflation report takes them off guard. Investors see 91% odds the Fed would keep rates unchanged, while the first interest rate cut is foreseen at June 2024.