Gold rises as dollar drops from more than 2-year high

Gold futures edged higher today, to continue to rebound for the fourth session from the lowest since August 4, as the US dollar continued to bounce from its highest since May 12, 2017, according to the inverse relation between them, ahead of the release of major US economic data, including speeches by the US Fed Chair and several other FOMC member.

Gold futures (December delivery) were higher by 0.13% to $1,515.10 an ounce as of 04:28 GMT, after opening at $1,511.60, as the futures opened on a bearish price gap after it closed yesterday at $1,513.80, while the dollar index rose by 0.01% to 98.87 points from the opening of 98.88.

Investors are anticipating the US monthly jobs report, with forecasts for the unemployment rate to hold at 3.7% unchanged from August, while the non-farm jobs change may show the creation of 145,000 new jobs in September, the average hourly earnings slow to 0.3% vs. 0.4%.

In addition to the release of the Trade Balance Index, with forecasts for the deficit to widen to $54.7 billion vs. $ 54.0 billion in July, and with the Chairman of the Federal Reserve Bank of Boston, Eric Rosengren opening remarks at an annual conference hosted by the Federal Reserve Bank of Boston.

The Federal Reserve Governor Jerome Powell will deliver the opening remarks at a Fed Listens event hosted by the Federal Reserve, in Washington, in addition to FOMC member Lael Brainard moderate a panel discussion titled "Gauging Maximum Employment in a changing Labor Market" at a Fed Listens event hosted by the Federal Reserve, in Washington.

Kansas City Federal Reserve Chairwoman Esther George will also deliver closing remarks at the 61st annual meeting of the National Association of Business Economics, in Denver, while also the FOMC member Randal Quarles will moderate another discussion titled "The Importance of Price Stability and Low Inflation in Today's Economy" at a Fed Listens event hosted by the Federal Reserve, in Washington.

The recent weak US data economy increased expectations that the Fed will cut the interest rates for the third time this year by 25 basis points at the next meeting.

President Trump lashed out once again on Tuesday at the US Federal Reserve monetary policy by accusing it of allowing the dollar to get so strong which is hurting the US manufacturers, to renew his criticism of the bank's chair, Jerome Powell, and described him and his team as their own worst enemies, and that the interest rate on federal funds is too high.

President Trump's tweets via his official Twitter account came after the US ISM manufacturing PMI showed a drop to 47.8 points in September (its lowest since June 2009) vs. 49.1 in August, and lower than forecasts of 50.4.

The World Trade Organization granted the US on Wednesday permission to impose tariffs on on $7.5 billion worth of imports from the EU, due to illegal support for Airbus over Boeing, and the US Trade Representative's office announced that the tariffs on EU imports will take effect starting from October 18.

Bearing in mind that the US trade protectionism against the EU has renewed the market concerns about global trade tensions, amid anticipation for the new round of the US-China trade talks at the 10th and 11th of October in Washington.