Gold gains after multi-session sell-off as US dollar, yields retreat
GOLD prices edged up on Thursday (Oct 5), getting a reprieve after declining in the previous eight consecutive sessions, as US bond yields and the US dollar stepped back from highs ahead of a keenly awaited non-farm payrolls report this week.
Spot gold was up 0.2 per cent to US$1,823.79 per ounce by 0051 GMT, attempting a rebound from its weakest levels since March which it touched on Tuesday. US gold futures rose 0.2 per cent to US$1,838.20.
Benchmark US 10-year bond yields fell from 16-year highs and the US dollar was 0.1 per cent lower.
A broad sell-off in world government bonds on Wednesday drove up US 30-year Treasury yields to 5 per cent for the first time since 2007 and German 10-year yields to 3 per cent, which could hasten a global slowdown and hurt stocks and corporate bonds.
Foreign exchange strategists are sticking with their forecasts for a weaker US dollar despite having been wrong-footed for years in predicting a downturn in the greenback, the latest Reuters poll showed.
The US services sector slowed in September as new orders fell to a nine-month low, but the pace remained consistent with expectations for solid economic growth in the third quarter.
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US private payrolls increased far less than expected in September. Markets now await the Labor Department’s more comprehensive and closely watched employment report for September on Friday.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5 per cent to 869.31 tonnes on Wednesday.
Spot silver gained 0.5 per cent to US$21.07 per ounce, off a seven-month low hit this week.
Platinum was up 0.1 per cent to US$867.20, having slid to its lowest in a year on Wednesday. Palladium rose 0.4 per cent to US$1,171.68, trading close to five-year lows touched in the last session. REUTERS
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