Latest News

Gold reaches over one-month high on weaker yields after United States data

Gold prices rose to a. morethanonemonth high up on Thursday after the current U.S. economic data pushed the Treasury yields even more, following a. soft core inflation reading this week that increased bets for a. more dovish Federal Reserve policy.

Area gold got 0.8% to $2,718.00 per ounce since. 9:55 a.m. ET (1455 GMT), hitting its highest considering that Dec. 12. U.S. gold futures rose 1.1% to $2,748.60.

Initial claims for state unemployment benefits rose to a. seasonally changed 217,000 for the week ended Jan. 11, the. Labor Department stated on Thursday. A Reuters poll had actually forecast. 210,000 claims.

The preliminary out of work claims were more than expected, so that. signals some weakening in the labour market, stated Alex. Ebkarian, primary operating officer at Allegiance Gold.

We also saw the U.S. Treasury yields dropping, so we're. seeing the beauty of gold re-invigorating.

U.S. Treasury yields pared gains and were trading near a. one-week low after retail sales, jobless claims and import. costs data.

Gold costs extended gains on Wednesday after information revealed. core U.S. inflation increased 0.2% in December after increasing 0.3%. for four straight months, also giving hopes for alleviating financial. policy.

Markets now expect the Fed to provide 37 basis points (bps). worth of rate cuts by year-end, compared to about 31 bps. before the inflation information.

Gold is seen as a hedge versus inflation, however higher. rate of interest taint non-yielding bullion's appeal.

Gold needs to discover itself in a helpful environment, so. long as market participants can hold on to expectations for Fed. rate cuts in 2025, said Exinity Group chief market analyst Han. Tan.

In other places, Israel airstrikes eliminated at least 77 individuals in. Gaza, hours after a ceasefire offer was announced to bring an end. to 15 months of war.

Spot silver increased 0.3% to $30.74 per ounce and. platinum firmed 0.2% to $940.00, while palladium. fell 1.9% to $943.0.

(source: Reuters)