Home Business Gold prices rise back towards 1-month peak

Gold prices rise back towards 1-month peak

Blanket Mine gold output rises marginally

Gold prices rise back towards 1-month peak

Gold prices rose back towards the previous session’s four-week high yesterday, supported by a weaker dollar and a fall in US Treasury yields, as investors awaited August US non-farm payrolls data due later this week.

Spot gold was up 0,2 percent at $1 813.16 per ounce by 1133 GMT, after hitting its highest since August 4 on Monday at $1 822.92. US gold futures rose 0,2 percent to $1 816.10.

“We have tailwinds from the dollar, which has weakened further, and softer yields. But against that the gold market has struggled to challenge a key area of resistance around $1 830-$1 835/oz,” Saxo Bank analyst Ole Hansen said.

“Also, the continued rally in global stocks has reduced the need for diversification, which is acting as a counter to supportive factors like a weaker dollar and yields.”

Making gold less expensive for other currency holders, the dollar index slipped to a more than three-week low.

The benchmark US 10-year yield fell to a one-week low.

Meanwhile, European stocks were en route for their seventh straight month of gains, as hopes for more policy support overshadowed economic risks from a surge in Covid-19 cases.

Following dovish remarks from Federal Reserve chief Jerome Powell at the Jackson Hole symposium last week, the spotlight shifts to Friday’s US jobs report, which could shed more light on the Fed’s tapering strategy.

The market is expecting an increase of 728 000 jobs, unemployment to fall to 5,2 percent from 5,4 percent, and average hourly earnings to rise 0,4 percent month-on-month.

“In case of disappointing jobs numbers gold could break above recent highs, and then even $1 900 is possible,” said Hareesh V, head of commodity research at Geojit Financial Services.

Elsewhere, silver eased 0,2 percent to $24,02 per ounce and was headed for a third straight month of declines, down 5,5 percent. — Reuters.

In other news,


A 13-year-old Warren Park girl who went missing last week was found drugged and gang-raped by two men in Kuwadzana.


The girl was found by her siblings after six days on Saturday at a house in Kuwadzana 2 where she was allegedly being injected with a drug and raped on several occasions…Full Story


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