Gold hits 2-week high as dollar, oil and yields fall after US midterms
GLD•Gold rose 1.7% to $4,130.27 an ounce, its highest level in more than two weeks, as the dollar and Treasury yields weakened and falling oil prices eased inflation concerns. Gold gained nearly 3.4% on Wednesday, its biggest daily rise since August 19.
1. Gold extends rally
Spot gold rose 1.7% to $4,130.27 an ounce, after reaching $4,146.63, its highest level since October 20. It jumped nearly 3.4% on Wednesday and was up more than $250 this week from Friday’s one-year low of $3,869.85. U.S. gold futures for December delivery gained 1.6% to $4,139.60 an ounce.
2. Dollar and yields weaken
The U.S. dollar and Treasury yields fell to multi-week lows, while Brent crude traded below $100 a barrel after dropping nearly 9% on Wednesday. Lower energy prices eased inflation concerns and expectations for higher-for-longer interest rates; the weaker dollar also made gold less expensive for buyers using other currencies. Investors awaited Friday’s U.S. non-farm payrolls report.
3. Other metals gain
Spot silver rose 1.1% to $52.80 an ounce, platinum gained 1.4% to $1,518.30 and palladium climbed 1.8% to $1,022.89.
