Gold prices rose on Thursday, boosted by dollar weaknessas investors await data on U.S. payrolls that could help determine the path of interest rates from the Federal Reserve.
Spot gold rose 0.2% to $2,028.49 per ounce while US gold futures fell 0.1% to $2,045.30.
10-Year Treasury Yields Near Three-Month Lowswhile the dollar index fell 0.3% against a basket of rival currencies, making gold cheaper for holders of other currencies.
The bullion reached a historical maximum of US$2,135.40 on Monday due to high bets on a Fed rate cut, before falling more than $100 due to uncertainty over the timing of reductions.
According to CME’s FedWatch tool, Operators are assessing the possibility of a rate cut for March next year at 60%.. The rate cut usually favors bullion, which does not yield interest.
The number of Americans who filed new applications for unemployment benefits rose less than expected last week, as the labor market continues to gradually slow amid cooling demand.
Attention now turns to Friday’s nonfarm payrollsbefore the Fed updates its economic and interest rate forecasts at its December 12-13 meeting.
Recent dovish comments from Fed officials and a slew of economic data Weaker than expected have raised expectations that U.S. interest rates have peaked and the central bank could begin cutting them early next year.
“Broadly speaking, gold is waiting for big US data and the Federal Reserve meeting before taking the next step”said Craig Erlam, market analyst at OANDA.
“Nonfarm payrolls data will ultimately determine whether gold breaks all-time highs again or whether there is profit taking and some correction.”
Among other precious metals, Spot silver fell 0.3% to $23.80 an ounce, platinum gained 2.2% to $909.31 and palladium rose 3.3% to $974.75 an ounce.
Source: Ambito
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