PRECIOUS-Gold hits over 1-week peak as dollar slips, risk appetite wanes

- Advertisement -


(update prices)

- Advertisement -

* US non-farm payroll data due Friday

- Advertisement -

* Dollar slips against major rivals

*China blames America for increased tension on Taiwan*

- Advertisement -

* Platinum, Palladium below 1% each

October 4 (Businesshala) – Gold prices hit a one-week high on Monday as a weaker dollar and risk-off sentiment in equity markets boosted demand for the safe-haven metal.

Spot gold was up 0.3% to $1,764.92 an ounce as of 13:37 a.m. EDT (1737 GMT). US gold futures rose 0.5% to $1,767.6.

“We are looking to hedge higher risk in the markets and gold seems to be benefiting from this. Often we have seen the dollar perform well in these conditions which have dragged on gold, but today we are seeing the opposite,” said Oanda analyst Craig Erlam.

“Perhaps investors are getting a little nervous about central banks withdrawing stimulus at such uncertain times for the economy.”

The dollar index fell 0.3% against its rivals, making gold less expensive for other currency holders.

Main indices on Wall Street fell as investors shifted out of technology stocks due to rising Treasury yields, while fresh US-China concerns over trade and Taiwan offered another reason for caution.

China on Monday blamed the United States for escalating tensions over Taiwan and vowed to “break” any separatist plots, as the island fired the largest ever by China’s air force in its air defense area at 52 planes. Reported intrusion.

Investors now await Friday’s US September nonfarm payrolls report, which is expected to show a continued recovery in the labor market, which could hit the Federal Reserve’s deadline to ease economic support.

Lower central bank incentives and interest rates raise bond yields, increasing the opportunity cost of holding non-interest bearing gold.

“Risk appetite will continue to provide short-term direction in terms of safe-haven demand ahead of Friday’s US non-farm payrolls report,” said Ricardo Evangelista, senior analyst at ActiveTrades.

Silver was up 0.2% to $22.56 an ounce, platinum fell 1% to $962.00 and palladium was down 1.2% to $1,895.22. (Reporting by Bharat Govind Gautam and Brijesh Patel in Bengaluru; Editing by Lisa Shumaker and Uttaresh. V)

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox