Gold tops $4,550 as weak dollar and fading rate-hike bets lift precious metals

Gold and silver rallied on Thursday, with gold futures on Comex CME Group Inc. ↗ 1.52% rising past $4,550 per ounce and silver topping $67, as a weakening U.S. dollar and softer global bond yields lifted precious metals to their highest levels since early June.

Weak Dollar and Rate Expectations Drive Rally

The rally builds on a trend that has accelerated throughout August, with gold gaining roughly 9% over the month as expectations for further Federal Reserve rate hikes have faded. According to the CME FedWatch Tool, the probability of interest rates being held unchanged in September now stands at 67 percent. The easing of rate-hike expectations has weighed on the dollar, making dollar-denominated gold more attractive to overseas buyers.business-standard

Reuters reported earlier this week that gold was climbing on a weaker dollar and fading expectations of a Fed rate hike. Spot gold was trading at $4,417 on Monday, and by Tuesday had risen to $4,488 — a 3.54% single-day gain — before pushing above $4,550 in Thursday's session.Reuters+1

Broad Metals and Crypto Surge

The move was part of a broader surge across metals and cryptocurrency futures. CME Group noted that gold broke above its recent sideways trading pattern and is now in "overbought" territory on a daily RSI chart, with the last such reading preceding gold's record high near $5,600 per ounce earlier this year. Bitcoin ↘ 0.78% futures rose over 6% and Ether Ethereum ↘ 1.34% futures gained more than 11%, both trading at their highest since early June.cmegroup

Strong central bank purchases and persistent safe-haven demand have also underpinned gold prices. On India's Multi Commodity Exchange, gold futures were trading near ₹1,58,300 per 10 gram, while silver futures were around ₹2,40,300 per kilogram.business-standard

What Comes Next

Traders are now watching upcoming jobless claims data and next week's jobs and inflation releases for signals on whether the Fed will hold rates steady or resume tightening. Gold remains well below its January all-time high near $5,600, but analysts note the current momentum echoes the conditions that preceded that peak.cmegroup