Driven by the sustained rapid rise of the US dollar and US Treasury yields, spot gold extended its downward trend last night and finally closed at $4328.28 per troy ounce. Gold prices fell by $120 in the previous day, or 2.71%, marking the third consecutive day of decline. Spot silver closed at $64.009 per troy ounce, down 3.73%.

In today’s (Tuesday) ASIan session, spot gold opened at $4332.09 per troy ounce and hit a high of $4335.56 per troy ounce. Gold remained weak in early‑session trading and dipped to a low of $4287.24 per troy ounce. At press time, gold was oscillating near $4307, with an intraday loss of 0.49%.

The US Dollar Index edged down briefly before resuming its advance last night, peaking at 99.80 and closing at 99.78, up 0.12%. The 2‑year US Treasury yield rose 5.7 bASIs points to close at 4.401%; the 10‑year US Treasury yield climbed 5.1 bASIs points to 4.803%; the 30‑year US Treasury yield gained 3.2 bASIs points to 5.275%.

Global crude oil benchmarks maintained strong upward momentum last night. WTI Crude Oil closed at $90.71 per barrel, up 5.05%; Brent Crude Oil settled at $95.22 per barrel, up 4.84%. US Natural Gas CFD closed at $2.948 per million British thermal units, up 0.614%.

All three major US stock indices closed lower overnight. The Dow Jones Index fell 418.49 points or 0.79% to 52767.41. The S&P 500 dropped 54.61 points or 0.71% to 7631.53. The Nasdaq Composite declined 271.11 points or 1.03% to 26099.77.

Major European stock indices finished in negative territory. Germany’s DAX 30 fell 1.22% to 25960.39. The UK FTSE 100 slipped 0.32% to 10790.08. France’s CAC 40 lost 0.39% to 8301.85. The EURO STOXX 50 dropped 0.82% to 6367.35. Spain’s IBEX 35 fell 0.85% to 19818.74. Italy’s FTSE MIB declined 1.29% to 51935.50.

Last night, the Shanghai Gold Exchange’s Au(T+D) closed 2.14% lower at RMB 938.5 per gram; Ag(T+D) closed 3.24% lower at RMB 15711.0 per kilogram. Early this morning, Au(T+D) opened 2.53% lower at RMB 934.73 per gram, while Ag(T+D) opened 3.94% lower at RMB 15598.0 per kilogram.

Holdings of SPDR Gold Trust, the world’s largest gold ETF, increased by 4.279 tonnes versus the prior trading day, bringing total holdings to 1046.636 tonnes. Holdings of iShares Silver Trust, the world’s largest silver ETF, remained unchanged at 15359.92 tonnes.

Today’s central parity rates for RMB in the foreign‑exchange market: USD/CNY quoted at 6.7829, up 20 pips (RMB depreciation); EUR/CNY at 7.8267, down 139 pips; HKD/CNY at 0.86497, down 0.1 pip; GBP/CNY at 9.1278, down 153 pips; AUD/CNY at 4.8246, down 127 pips; CAD/CNY at 4.8572, down 115 pips; 100JPY/CNY at 4.2218, down 83 pips; CNY/RUB at 12.9108, up 853 pips; NZD/CNY at 3.9789, down 139 pips; CNY/MYR at 0.59714, up 9.7 pips; CHF/CNY at 8.3256, down 276 pips; SGD/CNY at 5.3050, down 65 pips.

Latest data released overnight showed US July JOLTS Job Openings at 7.271 million versus an expected 7.300 million; the prior reading was revised from 7.359 million to 7.182 million. US August S&P Global Manufacturing PMI Final stood at 53.9, compared with a prior flash reading of 53.2. US August ISM Manufacturing PMI registered 54.6 versus expectations of 55.2 and a prior reading of 55.6. US July Construction Spending MoM was -0.5%, versus an expected 0%, with the prior reading revised from -0.10% to 0%.

US job openings edged higher in July, suggesting overall labour‑demand stability over recent months. The US labour market remains in the “low‑hiring, low‑layoff” pattern seen through most of the past few years. Amid geopolitical uncertainty and peRSIstent inflation, employers may remain cautious about expanding headcount.

Fed Governor Barr stated that the Federal Reserve should stand ready to raise interest rates if inflation fails to cool. Inflation has run above target for more than five years, and there are risks that price pressures could become entrenched. Policymakers can stay patient if incoming data shows inflation is moderating.

ECB Governing Council member Nagel noted that Eurozone core inflation fell in August and services‑sector inflation also slowed. He also criticised the recent US euro‑selling intervention to support the yen, which was carried out without prior coordination with European partners. Reports indicate the intervention used euros instead of US dollars, breaking long‑standing convention.

US Treasury Secretary Bessent said average daily US oil output has risen by 1.6‑2.2 million barrels since Trump took office. Bypass routes around the Strait of Hormuz will be operational within two years, rendering the strait commercially irrelevant as oil flows via overland pipelines instead. In addition, the US may announce banking sanctions this week and next, and has secured support from the EU, ECB, UK, UAE and Bahrain.

US Central Command stated it completed a wave of strikes against Iranian military targets on September 1, including air‑defence sites, radar systems, maritime assets and installations, mine‑laying capabilities and communications nodes. More than 50,000 US service personnel are currently deployed across the Middle East.

Iran’s Islamic Revolutionary Guard Corps issued a statement saying it launched heavy ballistic missiles at US Marine Corps camps along Jordan’s Gulf of Aqaba, destroying several key installations and enemy attack helicopters and inflicting heavy US military casualties.

Russian President Putin noted that negotiations over Ukraine are frozen and Russia stands ready to launch large‑scale strikes against Ukrainian energy infrastructure. Due to the Russia‑Ukraine war, Russia has cut its 2026 oil‑output forecast to the lowest level in 17 years. Russian crude‑oil production is projected to drop by 17.2 million tonnes this year to 494.2 million tonnes.

On the fundamental front for global gold, direct military clashes between the US and Iran have resumed after a one‑month lull. The conflict pushes up energy costs and amplifies global inflation pressure, raising odds of further monetary tightening by major central banks such as the Federal Reserve. Higher interest rates and bond yields exert direct downward pressure on non‑yielding gold. Meanwhile, major economies maintain large fiscal deficits and government‑debt levels, boosting bond issuance and adding supply‑side pressure, which lifts the opportunity cost of holding gold.

On the daily gold chart, prices have broken below both the 100‑day and 200‑day moving averages, signalling sustained bearish retracement. Bulls and bears are now fiercely contesting the $4300 threshold. Among daily indicators, the MACD positive histogram keeps shrinking, and the RSI drifts lower near the 44 level.

On the 4‑hour gold chart, all three BOLLinger‑Band lines slope downward. Short‑term EMA5 and EMA10 maintain a bearish alignment. The MACD negative histogram continues to expand, while the RSI falls into oversold territory near the 27 level. For intraday short‑term trading, expect gold to oscillate within the $4280‑$4340 range. A breakout higher would target $4350‑$4360 or near $4375; a breakdown lower would target $4270‑$4260 or near $4250.

Key economic data and events to watch today:

20:15 US August ADP Non‑Farm Employment Change

21:45 Bank of Canada Interest Rate Decision

22:00 US July Factory Orders MoM

22:30 US EIA Weekly Crude Oil Stockpiles (week ending Aug 28)

22:30 US EIA Weekly Cushing Crude Oil Stockpiles (week ending Aug 28)

22:30 US EIA Weekly Strategic Petroleum Reserve Stockpiles (week ending Aug 28)

22:30 Bank of Canada Governor Macklem press conference

02:00 (Next Day) Federal Reserve releases Beige Book

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