Gold gains more than 1% as US dollar, yields pull back; palladium gains 3%-HDmoviesfreedownload

By Arundhati Sarkar

(Reuters) – Gold prices jumped more than 1% on Thursday as a pullback in the dollar and U.S. Treasury yields provided support ahead of a key U.S. jobs report that could influence the Federal Reserve’s policy stance.

Spot gold was up 1% at $1,781.83 per ounce by 1128 GMT, While U.S. gold futures rose 1.2% to $1,798.20.

There are factors building that could be supportive to gold in the short term, including recession concerns, OANDA analyst Craig Erlam said.

“The Fed is really out in force this week trying to reinforce its message about the possibility of a larger September hike and not quickly reversing course next year, but investors seem keen to push back against that idea.”

Some U.S. central bank officials have voiced their determination to rein in high inflation, although one noted a half-percentage-point hike in its key interest rate next month might be enough to march towards that goal.

Gold is highly sensitive to higher interest rates as they increase the opportunity cost of holding non-yielding bullion.

Benchmark U.S. 10-year Treasury yields slipped from their highest levels in more than a week, while the dollar also eased. [US/] [USD/]

Meanwhile, the Bank of England raised interest rates by the most in 27 years, despite warning that a long recession is on its way.

“Don’t expect a UK rate hike to be of much impact (to gold), except to maybe raise concerns about a central bank raising rates into a recession, prompting fears of a deeper economic fall,” said independent analyst Ross Norman.

“Geopolitical concerns around Taiwan will certainly be adding to the modest gold gains this morning,” Norman added.

Investors are now focusing on the U.S. jobs data due on Friday.

Elsewhere, spot silver rose 1.1% to $20.26 per ounce, platinum gained 1% to $907.00, and palladium jumped 1.7% to $2,051.00.


(Reporting by Arundhati Sarkar in Bengaluru; editing by Jason Neely)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Leave a Reply

Your email address will not be published.