Gold prices rise above $4,100 as US dollar and yields fall
Bullion prices extended their gains following a Democratic sweep in the US midterm elections which weakened the greenback and Treasury yields.
Gold prices rose above $4,100 an ounce on Thursday as the US dollar and Treasury yields declined, according to Moneycontrol.
The precious metal extended gains following a jump of more than 3 per cent on Wednesday. The movement comes after the US midterm elections resulted in a Democratic sweep of Congress, which weakened the dollar by 0.4 per cent and lowered Treasury yields.
Lower yields support gold as the metal does not pay interest, while a weaker dollar makes it more affordable for buyers using other currencies. Spot gold rose 1.2 per cent to $4,111.02 an ounce at 9:19 a.m. in Singapore.
Oversea-Chinese Banking Corp. analysts, including Sim Moh Siong, stated in a note that gold is responding to supportive macro conditions. The analysts said they are cautiously optimistic that gold may be finding its footing, though they noted that easing Federal Reserve tightening expectations and investment demand are key to sustaining gains.
In other markets, Brent crude oil futures remained low after falling below $100 a barrel on Wednesday. Silver rose 0.9 per cent to $52.71, while platinum and palladium also saw advances.
Traders are now awaiting the US payrolls report due on Friday for indications regarding the economy and interest rates.
