(Bloomberg) -- Gold gained, hovering above $1,700 an ounce amid continued uncertainty over whether the US central bank will maintain its resolve to crush inflation by hiking rates.
The precious metal has been whipsawed by changing views on the Federal Reserve’s monetary policy stance. It had gained almost 4% in the first two trading sessions of the week amid disappointing US data, but slipped as much as 1.5% on Wednesday after fresh figures showed the American economy remains resilient.
The greenback and Treasury yields strengthened on Wednesday after the US print, putting gold under pressure. A surge in oil prices this week driven by reductions in output by the OPEC+ alliance is also threatening to add more inflationary pressure.
Fed officials also reiterated their hawkish stances on raising interest rates. Bullion typically has a negative correlation with the dollar and rates since it does not bear interest.
More employment data due this week, including the release of US nonfarm payrolls on Friday, may offer new clues on the likely tightening trajectory.
Spot gold rose 0.4% to $1,723.39 an ounce as of 8:49 a.m. in Singapore, following Wednesday’s 0.6% dip. The Bloomberg Dollar Spot Index declined 0.3%. Silver, palladium and platinum gained.