(Reuters) – Gold prices hit their highest level in more than a month on Thursday as dollar and US yields plummeted and the Federal Reserve’s repetition of its soft policy also boosted bullion’s appeal.
Spot gold was up 1.1% to $ 1,756.93 an ounce by 14.19 GMT, previously hitting its highest since March 1 at $ 1,757.82. US gold futures rose 0.9% to $ 1,756.50.
“The dollar and US yields are declining and this is a key catalyst right now … the rather unimpressive number of jobs is also helping to push gold up,” said Bob Haberkorn, senior market strategist, RJO Futures.
“And the fact that we are above $ 1,750, which is a key technical level, shows that gold has some room to continue to rise.”
The dollar fell to more than a two-week low while Treasury yields fell, making gold more attractive compared to alternative investments like bonds.
According to the data, last week the number of new jobless claims in the US rose unexpectedly.
This underscored the Fed’s commitment to supporting the economy until its recovery is safer, as the minutes of the last central bank policy meeting on Wednesday showed.
“Gold was somewhat weak because people were very optimistic about the economic recovery and vaccinations to resolve the pandemic, and the Fed seemed to reinforce the notion that the pandemic was not over yet,” said Jeffrey Christian, managing partner at CPM Group.
“There is a real race between options and vaccinations, and right now options seem to be taking over globally.”
Market participants are now awaiting a speech by Fed Chairman Jerome Powell at a virtual conference of the International Monetary Fund later Thursday.
Silver rose 1.4% to $ 25.47 an ounce, hitting more than a two-week high of $ 25.60. Palladium added 0.5% to $ 2,635.61, while platinum remained unchanged at $ 1,225.41.
(Reporting by Sumita Layek in Bangalore; Editing by Susan Fenton)