Gold rose over 1.5% on Thursday as a
slide in the dollar and Treasury yields burnished bullion’s
safe-haven appeal after weak US jobs numbers compounded
Spot gold rose 1.4% to $1,840.97 per ounce by 2:20
pm ET (1820 GMT), while US gold futures settled up
1.4% at $1,841.2.
Gold prices dropped to a near four-month low earlier on
Monday and are up about 3% since the dollar backtracked from
“Dollar is falling and yields are significantly lower and
this is good news for gold,” said Edward Moya, senior analyst
Making bullion cheaper for overseas buyers, the dollar slid
1%, while US yields dropped to a three-week low.
Although the number of Americans on jobless rolls are at its
lowest since 1969 in early May, weekly jobless claims
unexpectedly rose last week.
“Gold is attracting safe-haven flows as the focus has
shifted to the weakness in the US with jobless claims rising
and all the negative talk about inflation. There is good amount
of pessimism with regards to global stocks,” Moya added.
Further aiding the safe-haven metal’s appeal, global equity
markets skidded further as fresh signs of slowing growth led
investors to sell stocks and move into safe-haven assets.
Gold is considered an inflation hedge. However, the metal
has had to battle with the dollar as a safe-haven of late given
the US Federal Reserve’s aggressive policy stance to fight
Non-yielding bullion tends to fall out of favor when
interest rates rise.
The recent retreat in gold prices has helped its appeal
among investors as they continue to seek safety from riskier
assets and hedge against inflation, Fawad Razaqzada, market
analyst at City Index, wrote in a note.
Spot silver was up 2.5% to $21.92 per ounce, platinum
jumped 3.1% to $964.23 and palladium rose 0.1% to
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Krishna Chandra Eluri and Amy Caren Daniel)