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Gold jumps 1.1% as dollar and yields ease from highs
Spot gold rebounded to about $4,376 per ounce after Treasury yields slipped from multi year highs, with traders focused on upcoming U.S. payroll data and Fed policy expectations.
Gold rose more than 1% on Wednesday, bouncing from a near one month low as the U.S. dollar and Treasury yields retreated from recent highs, according to LiveMint Markets. Spot gold gained 1.1% to $4,376.41 per ounce by 1:57 p.m. EDT, after earlier falling to its lowest level since Aug. 7.
U.S. gold futures for December delivery also edged higher, settling at $4,414.60, up 0.4%. David Meger, director of metals trading at High Ridge Futures, said a modest pullback in yields during the day helped support gold off recent lows.
Treasury yields eased after touching multi year highs earlier in the session, with oil prices also easing and investors awaiting U.S. payrolls data for clues on the Federal Reserve policy path. The New York Fed President John Williams said rising long term bond yields were not driven by inflation fears but instead reflect a solid economy, LiveMint Markets reported.
Investors were looking ahead to Friday's nonfarm payrolls report after August private payroll growth came in below expectations. LiveMint Markets also noted traders are pricing a 64% chance of an interest rate hike this month, and that the Dutch central bank transferred 86 metric tons of gold from New York and Ottawa to London over the past six months to improve tradability and bolster crisis preparedness. Elsewhere, spot silver rose 1.2% to $65.03 per ounce, platinum gained 0.9% to $1,756.39, and palladium climbed 3.1% to $1,352.74.
Latest closeGold $4,431.70 ▲1.9%|Silver $65.91 ▲2.0%|Platinum $1,767.60 ▲0.3%