Gold Hits $2,008 as US Dollar Weakens
Gold pushed back above the US$2,000 mark early on Friday as the dollar and yields plunged after the United States added fewer than expected new jobs last month.
According to data from the market, Gold for December delivery was last seen up US$15.40 to US$2,008.90 per ounce, the highest since July 18.
The rise comes as the dollar moved sharply lower after the United States reported a rise of 150,000 jobs last month, under expectations for a rise of 170,000 positions and pushing the unemployment rate to 3.9% from 3.8%.
The bearish report added to losses for the dollar that came after Federal Reserve chair Jerome Powell on Wednesday suggested the central bank may be finished raising interest rates, leaving them at a 22-year high. The ICE dollar index was last seen down 0.8 points to 105.32.
“The Fed unanimously decided to leave rates unchanged yesterday and signalled that higher yields reduce the need to hike. It’s the Fed’s path that will decide how durable gold’s recent gains are,” RBC Capital Markets commodities strategist Christopher Louney said in a Thursday note.
Treasury yields were also sharply lower following the jobs report, with the US two-year note last seen paying 4.874%, down 10.1 basis points, while the yield on the 10-year note was down 12.9 basis points to 4.534%. # Gold Hits $2,008 as US Dollar Weakens. Nigerian Treasury Bills Yield Rises to 7%
