Gold prices witnessed a noticeable rise on Thursday, as they move towards ending a losing streak that lasted for eight sessions, the longest since 2016.
This comes in light of the decline in US Treasury bond yields and the decline in the value of the dollar, coinciding with markets awaiting key employment data scheduled for release tomorrow, Friday.
Gold and dollar now
Gold futures rose 0.16% to $1,837 an ounce.
While spot gold contracts rose by 0.14% to $1,823 per ounce. In an attempt to recover from its weakest level since March, which it touched on Tuesday
On the other hand, the dollar index fell by 0.07% to 106.457 points.
Gold at settlement yesterday
Gold prices fell at the settlement of trading yesterday, Wednesday, with the yellow metal continuing its losses for the eighth session in a row, despite the decline in the dollar index and US bond yields after the US private sector added jobs less than expected during September, according to ADP data.
Separate data showed the continued flexibility of the US economy despite monetary tightening, as service activity in the United States grew in September for the ninth month in a row, and factory orders also rose more than expected during August, which was consistent with expectations of strong economic growth during the third quarter.
Upon settlement, gold futures for December delivery fell by 0.35%, or $6.7, to reach $1,834.8 per ounce.
No change in price direction
Yip Jun Rong, a market analyst at IG, said that although there was an attempt to stabilize gold prices during today's session, there is no great conviction that the price trend has changed yet.
He continued that any movements before the non-farm payrolls report in the United States this week may be short-lived, as official jobs data remains the main driver of the market direction, along with next week’s consumer price index data.
Data on Thursday showed that US private payrolls increased much less than expected in September. While markets now await the more comprehensive employment report released by the Labor Department on Friday.
A broad sell-off in global government bonds on Wednesday sent 30-year U.S. Treasury yields to 5% for the first time since 2007 and Germany's 10-year yields to 3%, which could accelerate the global slowdown and hurt stocks and corporate bonds.
While benchmark US 10-year bond yields fell from their highest levels in 16 years on Thursday and the US dollar fell, relieving some pressure on gold.
The SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.5% to 869.31 metric tons on Wednesday, the lowest level since August 2019.
The federal interest rate tracking tool on Investing Saudi Arabia showed that the probability of increasing interest rates by 25 basis points at the Federal Reserve meeting in November reached 23.7%, compared to 22.5% a week ago, so that the monetary policy range would then range between 5.5% and 5.75%.
other metals
The dollar's decline supported other precious metals priced in it, as silver in spot transactions increased 1.1 percent to $21.19 per ounce, after it fell this week to its lowest levels since mid-March.
Platinum gained 0.5 percent to $870.16, rising from its lowest level in a year, which it recorded in the last session. Palladium rose 1.2 percent to $1,181.15, moving away from the lowest level in five years that it touched on Wednesday.
