- November 8, 2021
- By: Admin1_blog
- Precious Metal Market
- Spot gold was up 1.2% at $1,813.36 per ounce by 01:45 p.m. ET.
- U.S. gold futures for December delivery settled up 1.3% at $1,816.80 per ounce.
American eagle printed on gold coinsBackyard Production | Getty Images
Gold rose more than 1% on Friday to a near two-month high as major central banks’ dovish tone on interest rates this week lifted the demand for the safe-haven metal.
Spot gold was up 1.2% at $1,813.36 per ounce by 01:45 p.m. ET (1745 GMT), recovering from a 0.3% drop sparked by data showing U.S. employment increased more than expected in October.
U.S. gold futures for December delivery settled up 1.3% at $1,816.80 per ounce.
The limited reaction to the data shows “despite the strong labor market report, it is not going to change what Federal Reserve Chair Jerome Powell signaled this week,” said Edward Moya, senior market analyst at brokerage OANDA.
The Federal Reserve on Wednesday stuck to its view that inflation would prove “transitory” and would likely not require a fast rise in interest rates. Following that, the Bank of England surprised markets by keeping rates on hold.
Near-zero interest rates to spur economic growth during the COVID-19 pandemic have propelled gold prices to new highs over the last two years, as easy monetary policy cuts the opportunity cost of holding non-yielding assets.
This week, the central bank announcements helped gold reverse from early losses to be on course for its best weekly gain since late August of about 1.8%.
“Gold bulls seem to be drawing strength from the Fed’s unhurried stance on raising interest rates,” said FXTM analyst Lukman Otunuga, adding that subdued treasury yields were also underpinning the gains.
Yields on the U.S. 10-year treasury notes slipped to their lowest level in about a month.
Physical gold demand in India, the world’s second largest consumer, jumped this week as buyers took advantage of a slight dip in prices and bought the precious metal during the festival season.
Spot silver rose 1.2% to $24.05 per ounce. Platinum rose 0.7% to $1,032.71 per ounce and palladium was up 1.3% at $2,025.32 per ounce, both on course for a weekly gain.
Source : CNBC
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