COMEX gold futures for December delivery closed up $125.30, or 2.84%, at $4,539.90 per ounce, after Federal Reserve Governor Christopher Waller signaled support for holding interest rates at this month's meeting if upcoming inflation data does not exceed expectations. Waller said inflation trends are beginning to show signs of slowing, and that higher import tariffs and energy prices have not yet had a significant impact. Meanwhile, CME's FedWatch tool indicated that investors have reduced the probability of a rate hike at this month's meeting to 50.4%, down from 63.2% on Wednesday. Following the news, the yield on the 10-year U.S. Treasury note fell to 4.752%, and the dollar index weakened 0.69% to 98.91, which supported gold prices. Investors are now focusing on the U.S. non-farm payrolls report for August, due out today, which is expected to show an increase of 58,000 jobs, with the unemployment rate holding steady at 4.1%.
Fed Governor signals support for holding rates, reducing hike odds, leading to lower policy rate expectations.
Fed rate hold hopes push 10-year Treasury yield down to 4.752%.
