Gold Extends Rally to Two-Week High
Gold rose more than 1% to above $4,120 an ounce on Thursday, extending its post-election rally to the highest level since October 21. The advance was supported by a weaker US dollar, which remained near a one-month low, while oil prices stayed below $100 a barrel, easing inflation concerns. Bullion surged more than 3% on Wednesday, its sharpest daily gain since August 19, benefiting from falling energy prices, lower Treasury yields and easing concerns over inflation and interest rates. The unexpected Democratic takeover of both the House and Senate also weighed on the dollar and yields, as it reduces the likelihood of further deficit-expanding legislation under the Trump administration and may limit the risk of further escalation in the Iran war. Meanwhile, traders are pricing in an approximately 80% probability of a Fed rate hike in December, according to the CME FedWatch Tool. Investors are now turning their attention to Friday's US nonfarm payrolls report.
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Gold rose more than 1% to above $4,120 an ounce on Thursday, extending its post-election rally to the highest level since October 21. The advance was supported by a weaker US dollar, which remained near a one-month low, while oil prices stayed below $100 a barrel, easing inflation concerns. Bullion surged more than 3% on Wednesday, its sharpest daily gain since August 19, benefiting from falling energy prices, lower Treasury yields and easing concerns over inflation and interest rates.
The unexpected Democratic takeover of both the House and Senate also weighed on the dollar and yields, as it reduces the likelihood of further deficit-expanding legislation under the Trump administration and may limit the risk of further escalation in the Iran war. Meanwhile, traders are pricing in an approximately 80% probability of a Fed rate hike in December, according to the CME FedWatch Tool. Investors are now turning their attention to Friday's US nonfarm payrolls report.