NEW YORK: Gold prices ticked higher on Monday, propped up by a weaker dollar and US bond yields, though an uptick in risk appetite took some shine off the safe-haven metal.
Spot gold rose 0.1% to $1,816.01 per ounce by 1:44 pm EDT (1744 GMT), having hit a session low of $1,804.49, while US gold futures settled up 0.3% at $1,822.20. Restoring some of gold’s appeal, the dollar index fell 0.1% against its rivals and benchmark US 10-year Treasury yields dropped to a near two-week low.
Focus now shifts to July’s US non-farm payroll numbers, due on Friday, expected to shed more light on the health of the labour market.
“The non-farm jobs report is likely to be the main focal point for gold traders, as it could impact the Fed’s decision on the timeline of tapering quantitative easing,” said Fawad Razaqzada, analyst with ThinkMarkets.
“It is also worth keeping a close eye on the COVID situation, for if the situation gets bad, it could negatively impact growth and in turn the Fed’s policy, potentially causing the dollar to weaken and supporting gold.” But, limiting bullion’s gains, the US S&P 500 index rose and wasn’t far off record highs.
“There’s a slight lesser need for safe havens as the equity markets are surging once again,” said David Meger, director of metals trading at High Ridge Futures.
“However, the underlying premises post (the) Federal Reserve meeting is an environment that is conducive to the yellow metal moving forward.” Fed Chair Jerome Powell last week said the job market still had “some ground to cover” before it could pull back its support to the economy, propelling gold prices to a two-week high.
Elsewhere, silver was steady at $25.47 per ounce, platinum rose 0.8% to $1,057.30, and palladium gained 0.8% to $2,681.57.
Comments
Comments are closed for this article.