Gold hits more than two-week high as dollar, yields weaken; US payrolls data awaited
GLD•Spot gold rose 0.9% to $4,095.49 an ounce after reaching $4,146.63, its highest since October 20. Investors awaited Friday’s US payrolls report, while the dollar and Treasury yields weakened.
1. Gold extends gains
Spot gold rose 0.9% to $4,095.49 an ounce by 11:12 a.m. ET on Thursday, after reaching $4,146.63, a level last seen on October 20. Gold had gained nearly 3.4% on Wednesday, its sharpest daily rise since August 19, and was up more than $250 this week from Friday’s one-year low of $3,869.85.
2. Dollar and yields ease
The dollar hovered at its lowest level since September 30, while the benchmark 10-year Treasury yield was near a two-month low. Lower oil prices eased inflation concerns; Brent remained below $100 a barrel after falling nearly 9% in the previous session. Traders saw an 80% chance of a Federal Reserve rate increase in December.
3. Payrolls in focus
Investors awaited Friday’s US non-farm payrolls report for clues on the Fed’s rate path. Tai Wong, an independent metals trader, said gold could be vulnerable to a stronger-than-expected reading, which would likely confirm an already highly expected December rate hike. December US gold futures rose 0.8% to $4,105.80 an ounce.
