Gold hits 2-week high as dollar, yields and oil fall after US midterms
GLD•Gold rose 1.4% to $4,117.69 an ounce on Thursday, after reaching $4,146.63, its highest since October 20. Prices gained nearly 3.4% Wednesday and were up more than $250 this week as the dollar and Treasury yields weakened.
1. Gold extends rally
Spot gold rose 1.4% to $4,117.69 per ounce by 1316 GMT, after touching $4,146.63, a level last seen on October 20. Gold jumped nearly 3.4% on Wednesday, its biggest daily gain since August 19, and was up more than $250 this week from Friday’s one-year low of $3,869.85. December U.S. gold futures gained 1.3% to $4,127.40 per ounce.
2. Dollar and yields weaken
The dollar and Treasury yields fell to multi-week lows, while oil remained below $100 a barrel after dropping nearly 9% on Wednesday. Saxo Bank’s Ole Hansen said falling energy prices, easing inflation and interest-rate concerns, declining yields and a weaker dollar had helped precious metals and prompted speculative short covering.
3. Investors await data
Traders saw an 81% chance of a Federal Reserve rate increase in December, while investors awaited Friday’s U.S. non-farm payrolls report. The Bank of England was widely expected to raise rates on Thursday. Silver rose 0.7% to $52.56 an ounce, platinum gained 1.3% to $1,516.14, and palladium climbed 3% to $1,034.62.
