Gold rallies as dollar and Treasury yields soften after US midterm results
GLD•Spot gold rose 1.6% to $4,124.89 an ounce on Thursday, after gaining about 3.4% on Wednesday, as the dollar and Treasury yields weakened. Citi set a 0–3 month gold price target of $4,500 an ounce.
1. Gold extends gains
Spot gold climbed 1.6% to $4,124.89 an ounce by 0752 GMT, after reaching $4,146.63, its highest level since October 20. It gained about 3.4% on Wednesday, its biggest daily rise since August 19. December US gold futures rose 1.5% to $4,135.40.
2. Dollar and yields ease
The dollar fell to its lowest level in more than a month, while the 10-year US Treasury yield reached its lowest since September 10. Lower energy prices could ease inflation pressures and reduce expectations for higher interest rates, supporting the appeal of non-yielding gold. Investors are awaiting Friday’s US non-farm payrolls report.
3. Targets and other metals
Citi set a 0–3 month gold price target of $4,500 an ounce, citing potential if the Strait of Hormuz reopens and the Yemen-Saudi conflict de-escalates. Silver rose 0.8% to $52.63 an ounce, platinum gained 1.2% to $1,514.20 and palladium climbed 2.2% to $1,026.83.
