Gold Ends Higher as Dollar, Bond Yields Rise
Gold rebounded from early weakness on Friday after an unexpectedly robust United States (US) jobs report boosted the dollar and bond yields rose to the highest in more than two years.
Meanwhile, the hawkish poise of the Federal Reserve continues to drive yields forward while the dollar consolidates its position against trading partners. 2022 has been projected as the year for a strong rise in commodities prices.
There have been across board price increments, though Gold, and other extractive resources have seen their prices fluctuating. On the other hand, the global oil market has been solid.
According to market data, Gold for April delivery closed up US$3.70 to settle at US$1,807.80 per ounce today, after earlier falling as low as US$1,792.10 in the previous day amidst rising demand.
The rise came even after the United States reported a rise of 467,000 jobs last month, well ahead of expectations for a rise of 150,000, according to MarketWatch. Increased jobs supply in the US signals an improvement in macroeconomic condition. This is expected to have a spillover effect on the global commodities market.
Expectations for the report were low after data released earlier this week showed the first drop in private sector employment in more than a year. Read: Gold Falls as Hawkish Fed Minutes Boost Bond Yields
The dollar rose following the report’s release, making gold more expensive for international buyers. The ICE dollar index was last seen up 0.06 points to 95.44. Bond yield also rose sharply, bearish for gold since it offers no interest.
The yield on the US 10-year note was last seen up 8.9 basis points to 1.928% after earlier touching 1.939%, the highest since November 2019. #Gold Ends Higher as Dollar, Bond Yields Rise
