SINGAPORE: Gold prices rose in Asian trade on Thursday as a pullback in the US dollar and Treasury yields lifted demand for the safe-haven metal, while investors awaited US non-farm payrolls data for April due later this week.
Spot gold was up 0.4% at $1,794.30 per ounce by 0650 GMT. US gold futures rose 0.6% to $1,794.20 per ounce.
“The US Federal Reserve is continuing to push back here, it is good for gold because it’s keeping yields lower. I think this will eventually lead to a weaker US dollar,” said Stephen Innes, managing partner at SPI Asset Management.
“A test of $1,800 is expected sooner rather than later the way this market is marching on to the beat of a very dovish Fed.”
Focus now shifts to Friday’s US monthly jobs report, which is expected to show non-farm-payrolls increased by 978,000 last month.
Lower interest rates decrease the opportunity cost of holding non-yielding bullion.
Spot gold is expected to retest resistance at $1,802 per ounce, with a good chance of breaking above this level and rising to $1,816, according to Reuters technical analyst Wang Tao.
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