Gold held its rally on a cocktail of positive drivers including weak macroeconomic data, sinking Treasury yields and expectations for fresh easing from the U.S. Federal Reserve.
Bullion held above $1,400 an ounce and rose to the highest since May 2013 ahead of a U.S. holiday Thursday. Donald Trump has tapped two economists to the Fed’s board who are both seen as likely to support the president’s call for lower interest rates. Meanwhile, weaker than expected U.S. payrolls and service industry data overshadowed a decline in jobless claims.
Gold futures climbed as much as 2.3% in early trading before paring gains and settling hire at $1,420.90 at 1:30 p.m. on the Comex in New York. A gauge of the dollar held Tuesday’s losses, while Treasury yields sank to the lowest sinceNovember 2016. Holdings in gold-backed exchange-traded funds snapped 14 days of gains Tuesday, but are still near the highest since 2013.
Source : Bloomberg