Gold sees modest hike as US dollar stabilizes; silver dips 1.4%

Gold bars

Gold prices witnessed a marginal increase today, Sept. 3, as the US dollar stabilized near its highest level in two weeks, with investors awaiting the monthly US jobs report due by the end of this week.

Bullion for December delivery grew 0.11%, or $2.90, to $2,530.50 per ounce at 10:11 am Makkah time, while spot prices plunged by 0.11% to $2,496.86 an ounce.

Elsewhere, silver futures for September delivery plummeted by 1.41% to $28.77 per ounce, in tandem with a 1.05% pullback in platinum spot prices to $920.62 an ounce.

Meanwhile, the US dollar index, which gauges the greenback's strength against a basket of six currencies, held ground near a two-week high of 101.69 points.

A stronger US dollar makes the yellow metal more expensive for other currency holders, Kelvin Wong, OANDA's senior market analyst for Asia Pacific, told Reuters. He added, “Gold is unable to recapture levels around all-time highs due to lack of fresh positive catalysts.”

“If we see US data pointing to a weak economy and the Fed taking to the narrative of having a jumbo rate cut, gold will rally ... Prices could go as high as $2,640 this year,” he was quoted as saying.