NEW YORK: Gold prices climbed more than 1% on Monday to an over one-week peak, lifted by a dip in the dollar and US bond yields, while silver surged on strong safety demand as it heads for its best day since February last year.
Spot gold was up 1.7% at $1,687.99 per ounce, as of 1450 GMT, its highest since Sept. 22. US gold futures rose 1.5% to $1,696.70.
Silver climbed 7.6% to $20.44 per ounce.
The gold and silver market is seeing a modest safe haven bid, and support from fellow raw commodity crude oil posting solid gains, said Jim Wyckoff, senior analyst at Kitco Metals.Boosting safe-haven demand for metals, US manufacturing activity grew at its slowest pace in nearly 2-1/2 years in September.
“There were a few surprises in US data, suggesting the world’s largest economy is slowing down, thus reducing the need for aggressive rate increases,” Fawad Razaqzada, market analyst at City Index, said in a note.
The dollar eased, helping demand for the greenback-priced bullion among overseas buyers. Benchmark US 10-year Treasury yields fell to an over one-week low, supporting demand for zero-yield gold.
“You’re going to have to see a close back above $1,700 to get the (gold) bulls revived a little bit, and even that, really doesn’t change the technical posture a whole lot... the bears are still in pretty firm technical control,” Wyckoff added.
A slowing rally in the safe-haven currency has afforded gold some respite, with prices staging a mini-recovery since sliding to their lowest since April 2020 on Sept. 28.
“I’m not sure gold bulls will be getting overly excited by today’s move, especially ahead of Friday’s (US) jobs report which could cause another stir,” Craig Erlam, senior market analyst at OANDA said in a note.