Weaker US dollar and falling oil prices drive gold higher for the third consecutive trading day

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智通财经2026/08/05 06:21

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On Wednesday, spot gold continued its rally, rising 2.4% intraday to $4,172.86 per ounce, marking a four-week high. The ongoing softness of the US dollar and further declines in oil prices jointly supported the price of gold. A weaker dollar makes gold more attractive to overseas buyers, while falling oil prices ease market concerns about inflation and interest rate hikes.
On the geopolitical front, Qatar stated that mediators have made progress in efforts to end the US-Iran conflict, but Tehran denied Trump's claim that negotiations have begun. Analysts pointed out that the correlation between gold and oil remains, and if tensions find a clear path to easing, gold prices may rise further.
Regarding interest rate expectations, traders currently estimate a 59% probability of a Federal Reserve rate hike in September, down from 67% the previous day. Philadelphia Fed President Harker expressed an "open attitude" toward the direction of future monetary policy, noting that the economic outlook may mean rates need to remain elevated.
The market's focus is shifting to the ADP employment report to be released later today and Friday's July nonfarm payrolls report. Analysts expect gold prices to consolidate within a range near current levels in the short term.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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Weaker US dollar and falling oil prices drive gold higher for the third consecutive trading day

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