Gold rises slightly as the dollar retreats and ahead of US jobs data

Gold rose slightly on Wednesday as the dollar retreated, with traders awaiting U.S. jobs data for clues about the next move by the Federal Reserve (the U.S. central bank) on monetary policy.

Attention this week is focused on the U.S. jobs report for July, scheduled for release on Friday.

The ADP National Employment Report is also due later on Wednesday.

On the geopolitical front, Qatar said mediators are making progress in efforts to end the U.S.-Iran conflict, despite Tehran’s denial that talks are underway, as affirmed by U.S. President Donald Trump.

The sharp rise in oil prices due to the conflict has increased expectations that the Federal Reserve may be forced to raise interest rates to control inflation.

Gold’s appeal tends to wane when interest rates rise, despite its status as a hedge against inflation.

Traders currently see a 57 percent probability of a rate hike at the Federal Reserve’s meeting scheduled for September 15-16.

Anna Paulson, president of the Federal Reserve Bank of Philadelphia, said she is approaching the future of monetary policy with an “open mind” amid forecasts that could necessitate raising interest rates.

Data released on Tuesday showed a decline in the number of job openings in the United States in June. Job openings in the health care and social assistance sector recorded their largest drop in nearly a year. However, improvements in hiring and a decline in layoffs indicated that the labor market remains stable.

In other metals, silver rose 0.2 percent in spot trading to $59.61 per ounce, platinum fell 0.2 percent to $1,732, and palladium dropped 0.4 percent to $1,348.