Gold rises after a multi-session decline as the US currency and yields fall

5 Oct 2023 , 09:28 AM

As U.S. bond rates and the dollar retreated from highs ahead of this week’s eagerly anticipated non-farm payrolls report, gold prices moved up on Thursday, enjoying a reprieve after falling for eight straight sessions.

Spot gold was up 0.2% to $1,823.79 per ounce, trying to recover from Tuesday’s lows, which marked the metal’s lowest point since March. Futures for U.S. gold increased 0.2% to $1,838.20.

Benchmark The yield on 10-year US government bonds decreased from 16-year highs, and the US currency was down 0.1%.

The U.S. 30-year Treasury yield increased to 5% on Wednesday for the first time since 2007 while German 10-year yields decreased to 3%, which might speed a global downturn and harm stocks and corporate bonds.

Despite being repeatedly proven wrong in their predictions of a decline in the value of the dollar, foreign exchange strategists are continuing to call for a weaker currency, according to the most recent Reuters poll.

The pace of expansion in the U.S. services sector slowed in September as new orders hit a nine-month low, but it was still consistent with forecasts for strong third-quarter economic growth.

Private payroll growth in the US was far slower than anticipated in September. Markets are now anticipating Friday’s release of the Labour Department’s more detailed and closely watched employment data for September.

The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.5% to 869.31 tonnes on Wednesday.

Spot silver increased 0.5% to $21.07 per ounce after this week’s seven-month low.

Following a decline on Wednesday to its lowest level in a year, platinum was up 0.1% to $867.20. Palladium increased 0.4% to $1,171.68, trading around session lows of five years.

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