Gold rebounds above $4,360 as dollar and yields ease

Gold rose above $4,360 an ounce in afternoon trading Wednesday, recovering from a near one-month low touched earlier, as the USD and Treasury yields pulled back from recent highs, while investors await US payrolls data due Friday for further clues on the Federal Reserve’s policy path.

Oil prices hit fresh six-week highs as traders weighed elevated supply risks from ongoing Middle East hostilities against signs that crude was still reaching the market.

Meanwhile, the latest ADP report showed US private businesses added 38,000 jobs in August, the weakest increase since January and below expectations of 47,000, pointing to a broader cooling in the labor market.

Markets now price in a 66% chance of a September Fed hike, up from around 40% a week ago, according to the CME FedWatch Tool.

Elsewhere, the Dutch central bank said it had transferred 86 metric tons of gold from New York and Ottawa to London over the past six months to improve tradability and strengthen crisis preparedness.