This is an archive article published on October 6, 2022
Gold gains on tepid dollar; traders eye US nonfarm payrolls
Spot gold was up 0.3% at $1,721.30 per ounce, as of 0653 GMT. U.S. gold futures rose 0.7% to $1,731.90.
A salesman shows gold necklaces to a customer at a jewellery showroom during Dhanteras, a Hindu festival associated with Lakshmi, the goddess of wealth, in Kolkata, India November 5, 2018. (REUTERS/File Photo) Gold edged higher on Thursday, buoyed by a subdued dollar and Treasury yields, although prices were confined to a narrow range as investors awaited U.S. nonfarm payrolls data that could affect the Federal Reserve’s rate hike strategy.
Spot gold was up 0.3% at $1,721.30 per ounce, as of 0653 GMT. U.S. gold futures rose 0.7% to $1,731.90.
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Benchmark U.S. 10-year Treasury yields eased after recording their biggest one-day jump since Sept. 26 on Wednesday, while the dollar index ticked 0.1% lower.
Lower yields decrease the opportunity cost of holding gold, which pays no interest.
“A weaker-than-expected non-farm payrolls print would likely constrain the Fed’s pace of tightening,” said Thomas Westwater, an analyst with DailyFX.
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