🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

PRECIOUS-Gold gains as stocks retreat; U.S. jobs data in focus

Published 04/09/2020, 01:46 pm
Updated 04/09/2020, 05:12 pm
© Reuters.
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Gold down 1.5% this week, silver 3%

* Platinum on track for worst week since March

* Dollar heads for its best week since May

* Interactive graphic tracking global spread of the coronavirus: https://tmsnrt.rs/3aIRuz7 in an external browser (Updates prices)

By Brijesh Patel

Sept 4 (Reuters) - Gold prices rose on Friday, as U.S. Treasury yields fell and a pullback in global equities bolstered demand for the safe-haven metal ahead of U.S. non-farm payrolls data, but a strong dollar put bullion on track for a weekly decline.

Spot gold XAU= was up 0.2% at $1,935.10 per ounce by 0651 GMT, off a near one-week low hit on Thursday. Bullion prices have declined 1.5% so far this week.

U.S. gold futures GCv1 rose 0.2% to $1,941.

"It's a bit of a flight to safety right now that we are seeing in gold, because the stock markets are lower," said Edward Meir, an analyst at ED&F Man Capital Markets.

"What also could be helping gold is the sharp slide we are seeing in U.S. yields."

Asia's stock markets slipped, following the steepest Wall Street sell-off since June, while benchmark 10-year U.S. Treasury yields were on track for their biggest weekly decline in nearly three months. MKTS/GLOB US/

Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

All eyes are now on U.S. non-payroll figures due out at 1230 GMT for the latest indication of how the coronavirus-hit economy is faring.

The data is expected to show payrolls grew by 1.4 million in August, compared to the 1.763 million jobs created in the previous month.

Gold is expected to be rangebound between $1,930 and $1,950 ahead of the non-farm payrolls report, said Stephen Innes, chief market strategist at financial services firm AxiCorp.

"The reason for gold not sort of firing higher right now is because the dollar is picking up steam," he added.

Limiting gold's advance, the dollar index .DXY held steady against its rivals and was on track for its best week since mid-May. USD/

Elsewhere, silver XAG= gained 0.3% to $26.72 per ounce but shed 3% for the week so far. Palladium XPD= climbed 0.5% to $2,296.52.

Platinum XPT= rose 0.6% to $894.30 but was on track for its worst week since mid-March, down over 4%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.