Gold hits two-week high as dollar, yields and oil fall after US midterms
GLD•Gold rose 1.9% to $4,134.82 an ounce on Thursday, reaching its highest level since October 20, as the dollar and Treasury yields weakened. The metal gained nearly 3.4% on Wednesday, its biggest daily rise since August 19.
1. Gold extends gains
Spot gold gained 1.9% to $4,134.82 per ounce by 1117 GMT, after reaching $4,146.63, a level last seen on October 20. Prices rose more than $250 this week from Friday’s one-year low of $3,869.85. December US gold futures gained 1.8% to $4,145.10 per ounce.
2. Dollar and yields weaken
The US dollar and Treasury yields fell to multi-week lows, while oil prices dropped sharply on Wednesday, easing inflation concerns. Saxo Bank’s Ole Hansen said falling energy prices, easing inflation and interest-rate concerns, declining yields and a weaker dollar had prompted speculative short covering. Traders saw a 79% chance of a Federal Reserve rate rise in December, and investors were awaiting Friday’s US non-farm payrolls report.
3. Other metals advance
Brent crude edged higher on Thursday but remained below $100 a barrel after falling nearly 9% the previous session. Silver gained 1.3% to $52.88 an ounce, platinum rose 1.8% to $1,523.51 and palladium climbed 2.8% to $1,033.25. The Bank of England was widely expected to raise rates to 4% from 3.75% on Thursday.
