Gold Gains on Subdued Bond Yields; U.S. Jobs Data in Focus


May 6 Reuters Gold prices edged higher on Thursday as a dip in U.S. treasury yields offset pressure from a stronger dollar, while investors awaited U.S. nonfarm payrolls data for April due later this week.

Spot gold was up 0.2 at 1,789.53 per ounce by 0322 GMT. U.S. gold futures rose 0.3 to 1,788.60 per ounce.

The U.S. Federal Reserve is continuing to push back here, it is good for gold because its keeping yields lower. I think this will eventually lead to a weaker U.S. dollar, said Stephen Innes, managing partner at SPI Asset Management.

A test of 1,800 is expected sooner rather than later the way this market is marching on to the beat of a very dovish Fed.

Benchmark U.S. 10year Treasury yields hovered close to a oneweek low hit on Tuesday, reducing the opportunity cost of holding noninterest bearing gold.

The dollar index, meanwhile, rose 0.1 against its rivals, hovering close to a twoweek high hit on Wednesday.

Focus now shifts to Fridays U.S. monthly jobs report, which is expected to show nonfarmpayrolls increased by 978,000 last month.

The U.S. economy may be growing more quickly and unemployment falling faster than the core of Fed policymakers projected in March, Fed Governor Michelle Bowman said on Wednesday.

However, Chicago Fed President Charles Evans reiterated his worries about reaching the 2 inflation goal and said he expected monetary policy to stay accommodative for some time.

Lower interest rates decrease the opportunity cost of holding…


Please enter your comment!
Please enter your name here