Precise Investors

Sunday, January 29, 2023
Alternative Investments

Gold gains on weaker dollar, Treasury yields

Gold gains

Spot gold added 0.5% to $1,744.30 per ounce and U.S. gold futures advanced 0.5% to $1,745

Gold gained on Thursday as a weaker dollar and Treasury yields bolstered bullion’s appeal, ahead of U.S. weekly jobless claims and retail sales data that will shed light on the pace of recovery in the world’s largest economy.

Spot gold added 0.5% to $1,744.30 per ounce by 1153 GMT. U.S. gold futures advanced 0.5% to $1,745.

Gold’s holding up fairly well today, we’ve seen the dollar weaken and U.S. 10 year Treasury yields are softer as well, said CMC Markets UK’s chief market analyst Michael Hewson. The big question at the moment is can we take out the highs that we saw last week, near the 50-day moving average which currently is capping the current rebound.

Making gold affordable for holders of other currencies, the dollar tumbled to a four-week low, while softer benchmark 10-year U.S. Treasury yields further boosted bullion’s appeal.

Focus is now on U.S. weekly jobless claims and March retail sales data due at 1230 GMT.

A decent jobless claims number or a decent retail sales number could actually knock gold back down again these numbers could be very important in the context of where gold goes to next, Hewson said.

U.S. Federal Reserve Chair Jerome Powell said on Wednesday the central bank would cut its monthly bond purchases before committing to an interest rate hike, clarifying the sequence of monetary policy adjustments are still months if not years in the future.

However, gold is unable to make any further significant and sustainable gains due to a lack of support from financial investors. There is still no sign of any trend reversal in gold ETFs, Commerzbank analysts said in a note.

Silver advanced 0.1% to $25.44 and palladium jumped 2% at $2,730.41, having earlier hit its highest since March 18 at $2,737.46. Platinum added 1.2% to $1,184.75.


The articles are for information purposes only and Precise Investors shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Precise Investors does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply