Gold prices firm on yields weakness

---

FE Team | Published: December 07, 2023 00:31:02

---

Gold prices inched higher on Wednesday buoyed by lower bond yields, while investors awaited for a crucial US employment report that could set the tone for Federal Reserve's policy meeting next week, reports Reuters.
Spot gold rose 0.2 per cent to $2,022.39 per ounce by 1038 GMT. US gold futures also gained 0.2 per cent to $2,039.90.
Helping bullion, benchmark 10-year Treasury yields hovered near a three-month low.
"While gold may draw support from speculation around the Fed cutting rates, it may take a fresh fundamental spark to re-ignite the bullish rally. This could come in the form of the highly anticipated U.S. jobs report on Friday," said FXTM senior research analyst Lukman Otunuga.
"The nearest support can be found at the psychological $2,000 level while multiple resistance can be identified at $2,035, $2,050, and $2,100."
The November US non-farm payrolls data due on Friday, could provide clues on the interest rate path ahead of the US central bank's policy meeting next week.
Bullion climbed to a record high of $2,135.40 on Monday on elevated bets for a Fed rate cut, before dropping more than $100 in the same session, due to uncertainty over the timing of the monetary policy easing.
Traders are pricing in about a 60 per cent chance of a rate cut by March next year, CME's FedWatch Tool shows.
Lower U.S. interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
"The buying (in gold) should gradually resume and outlook continues to remain bullish," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
Data on Tuesday showed U.S. job openings fell to a more than 2-1/2-year low in October, signalling that aggressive rate hikes have started to flow through the economy.
Silver fell 0.1 per cent to $24.10 per ounce, while platinum gained 0.2 per cent to $900.45. Palladium rose 1 per cent to $943.67 an ounce.