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B.and Brijesh Patel
August 31 (Reuters) – Gold prices rose back to the four-week high from the previous session on Tuesday, aided by a weaker dollar and a decline in US Treasury bond yields as investors waited for US non-farm payrolls for August Due by the end of this week.
Spot gold XAU = rose 0.3% to $ 1,815.11 an ounce by 0848 GMT after hitting $ 1,822.92 on Monday, its highest level since August 4th. US gold futures GCv1 rose 0.3% to $ 1,817.20.
“We have tailwind from the dollar, which has continued to weaken, and weaker returns. Conversely, the gold market struggled to challenge a key resistance area of ​​$ 1,830-1,835 / ounce, â€said Ole Hansen, analyst at Saxo Bank.
“Also, the ongoing rally in global stocks has reduced the need for diversification, which acts as a counterbalance to supporting factors such as a weaker dollar and weaker returns.”
Making gold cheaper for other currency holders, the dollar index = USD slipped to a low of more than three weeks. The benchmark US 10 year return US10YT = RR fallen to a week low. USD /US/
Meanwhile, European stocks were on their way to their seventh straight month of earnings as hopes for more political support overshadowed economic risks with a surge in COVID-19 cases. MKTS / GLOB.EU
After reticent remarks by Federal Reserve chief Jerome Powell at the Jackson Hole Symposium last week, the spotlight is on Friday’s US labor market report, which may shed more light on the Fed’s tapering strategy.
The market expects an increase of 728,000 jobs, a decrease in unemployment from 5.4% to 5.2% and an increase in the average hourly wage by 0.4% compared to the previous month.
“If job numbers are disappointing, gold could break past recent highs and $ 1,900 is possible,” said Hareesh V, director of natural resources research at Geojit Financial Services.
Elsewhere silver XAG = rose 0.1% to $ 24.09 an ounce but headed for a third straight month of 5.3% decline.
platinum XPT = rose 0.3% to $ 1,009.16, recording a fourth straight monthly loss, down 3.9%.
palladium XPD = slipped 0.4% to $ 2,484, its worst monthly performance in seven months, down 6.6%.
(Reporting by Brijesh Patel in Bengaluru; editing by Jan Harvey)
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
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