Gold rallies on softer dollar, easing yields after US midterm results
GLD•Gold rose 1.6% to $4,123.71 an ounce on Thursday after climbing about 3.4% the previous day, as the dollar and Treasury yields eased. Oil prices fell for a fourth day, while investors awaited Friday’s US nonfarm payrolls report.
1. Gold extends gains
Spot gold rose 1.6% to $4,123.71 per ounce by 0609 GMT, after reaching its highest level since October 20. It gained about 3.4% on Wednesday, its biggest daily rise since August 19, while US gold futures for December delivery climbed 1.5% to $4,133.
2. Dollar and yields ease
A weaker dollar and lower Treasury yields helped gold recover above $4,000. Market analyst Linh Tran said continued support from investment flows and yields could stabilise gold above that level, with a possible recovery toward $4,200 and then $4,400. Oil prices fell for a fourth day as easing energy prices tempered inflation concerns.
3. Investors await payrolls
Market participants are waiting for Friday’s US nonfarm payrolls report to assess the Federal Reserve’s monetary policy outlook. Citi said it had a 0–3 month gold price target of $4,500 per ounce, citing potential upside if the Strait of Hormuz reopens and the Yemen-Saudi conflict de-escalates by year-end.
