Gold firms near 1-month peak on softer dollar, slowdown worries

GOLD prices firmed on Friday (Aug 5) to hover near a 1-month high, as a retreat in dollar and US Treasury yields and growing recession fears boosted demand, keeping the safe-haven metal on track for its third straight weekly rise.

Spot gold was up 0.2 per cent at US$1,793.88 per ounce, as of 12.54 am GMT, after hitting its highest since Jul 5 on Thursday.

Bullion is up 1.6 per cent so far this week.

US gold futures rose 0.2 per cent to US$1,810.60.

The dollar struggled to gain a footing on Friday after dropping 0.6 per cent overnight against its rivals, making gold more appealing for other currency holders.

The yield on 10-year Treasury notes also slipped, reducing the opportunity cost of holding non-interest-bearing gold.

The Bank of England raised interest rates by the most in 27 years on Thursday in an attempt to smother surging inflation on track to top 13 per cent, even as it warned a long recession is coming.

The monthly US non-farm payrolls report will be closely watched on Friday that could offer more clarity on Federal Reserve's aggressive tightening plans to fight against inflation.

Economists expect an increase of 250,000 jobs for the month of July. Meanwhile, data on Thursday showed the number of Americans filing new claims for unemployment benefits increased last week.

SEE ALSO

Gold climbs as US-China geopolitical risks keep market on edge

China fired multiple missiles near Taiwan in its biggest ever military drills in the Taiwan Strait after US House of Representatives Speaker Nancy Pelosi visited the self-ruled island.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.03 per cent to 1,000.32 tonnes on Thursday.

Spot silver rose 0.2 per cent to US$20.21 per ounce, platinum gained 0.9 per cent to US$934.25, and palladium climbed 1.1 per cent to US$2,086.68. REUTERS