Gold $12.9 higher as dollar weakens and U.S. Treasury yield falls

Gold futures closed at their highest level in nearly seven months on Wednesday (Jan. 4), as dollar weakness and falling U.S. Treasury yields supported gold markets. Whereas investors are keeping an eye on Friday’s release of U.S. nonfarm payrolls data for a signal on the Federal Reserve’s (Fed) interest rate direction.

  • Gold futures rose $12.9, or 0.7%, to close at $1,859 per ounce.
  • Silver futures were down 27.2 cents, or 1.12%, at $23.964 per ounce.
  • Platinum futures were down $1, or 0.09%, at $1,092.3 per ounce.
  • Palladium futures rose $103.80, or 6.1%, to settle at $1,796.70 per ounce.

Gold futures closed in positive territory for the fourth consecutive day, supported by the dollar index which fell 0.24% against the basket of six other currencies to 104.2430. In addition, the yield on the 10-year U.S. Treasury bond fell to 3.677% last night. A weak dollar makes gold contracts denominated in dollars cheaper for investors holding other currencies, while a decline in U.S. Treasury yields reduces the cost of owning gold. This is because gold is an asset without interest.

Investors are waiting for the U.S. Labor Department’s December non-farm payrolls report, which will be released on Friday, while analysts expect the number of jobs to increase by only 200,000 in December. In November, 263,000 new jobs were created, and the unemployment rate is expected to remain at 3.7% in December.

The Spot Market is Open

Thursday, January 5, 2022

Metals
Updated at
USD
Price

Change

%Change
Gold
12.25
1,852.00
1,853.00
-2.90
-0.16%
1,850.60
1,860.00
Silver
12.25
23.75
23.85
+0.01
+0.04%
23.66
24.00
Platinum
12.25
1,073.00
1,083.00
-3.00
-0.28%
1,071.00
1,090.00
Palladium
12.00
1,714.00
1,864.00
-6.00
-0.35%
1,702.00
1,866.00
Rhodium
06.00
11,250.00
13,250.00
0.00
0.00%
11,250.00
13,250.00

Leave a Reply

Change Language
%d bloggers like this: