Update: Gold Rises to a Two-Week High on Easing Inflation Concerns
(Updates gold price in the second paragraph.) Gold rose for a third session early on Monday, climbing to a two-week high as Treasury yields retreated amid easing inflation concerns even as the dollar strengthens. Gold for August delivery was last seen up 1% to $4,166.80 per ounce, the highest since June 22. The rise comes as last week's US jobs report showed the labor market is weakening while energy prices are falling, easing concerns the Federal Reserve will need to raise interest rates. "The metal has been supported by expectations that the Fed will not hike rates anytime soon, amid easing inflation concerns and signs of a softening jobs market," Saxo Bank wrote. The dollar strengthened, with the ICE dollar index last seen up 0.07 points to 100.92. However Treasury yields fell, bullish for gold since it pays no interest. The yield on the US two-year note was last seen down 4.8 basis points to 4.133%, while the 10-year note was paying 4.488%, down 0.2 points.
(Updates gold price in the second paragraph.) Gold rose for a third session early on Monday, climbing to a two-week high as Treasury yields retreated amid easing inflation concerns even as the dollar strengthens.
Gold for August delivery was last seen up 1% to $4,166.80 per ounce, the highest since June 22.
The rise comes as last week's US jobs report showed the labor market is weakening while energy prices are falling, easing concerns the Federal Reserve will need to raise interest rates. "The metal has been supported by expectations that the Fed will not hike rates anytime soon, amid easing inflation concerns and signs of a softening jobs market," Saxo Bank wrote.
The dollar strengthened, with the ICE dollar index last seen up 0.07 points to 100.92.
However Treasury yields fell, bullish for gold since it pays no interest.
The yield on the US two-year note was last seen down 4.8 basis points to 4.133%, while the 10-year note was paying 4.488%, down 0.2 points.