Gold rises as dollar and Treasury yields fall

Gold prices rose today (Thursday) amid a decline in the dollar and U.S. Treasury bond yields, while investors await U.S. nonfarm payroll data that could shape expectations for the Fed's next move.

The employment report from ADP showed that U.S. private sector jobs increased moderately in August.

Eliya Speifak, head of global macroeconomics at Tasty Live, said the payroll report is likely the most critical moment of the week. If it comes in below expectations and expectations for a September interest rate hike fall, it could lead to higher gold prices.

Gold is typically viewed as an inflation hedge, but higher interest rates increase the opportunity cost of holding the non-yielding metal.

On the geopolitical front, four sources said senior advisors to former President Donald Trump are working to prevent an escalation of war with Iran before the midterm elections in November, hoping to limit Republican electoral losses.