PRECIOUS-Gold hovers near 2-1/2-month high on weaker U.S. dollar, bond yields

  • Reuters
  • Commodities News
PRECIOUS-Gold hovers near 2-1/2-month high on weaker U.S. dollar, bond yields
Credit: © Reuters.

May 7 (Reuters) - Gold prices on Friday hovered near a 2-1/2-month high, aided by a pullback in the dollar and Treasury yields as investors cautiously await U.S. non-farm payrolls data for further cues on the health of the world's biggest economy.

FUNDAMENTALS

* Spot gold XAU= was steady at $1,814.33 per ounce by 0028 GMT, after hitting its highest since Feb. 16 at $1,817.90 in the previous session.

* U.S. gold futures GCv1 were down 0.1% at $1,814.30 per ounce.

* The dollar index .DXY slipped to a one-week low against its rival, making gold less expensive for other currency holders. USD/

* Benchmark U.S. 10-year Treasury yields US10YT=RR hovered close to a two-week low. Lower bond yields reduce the opportunity cost of holding non-interest bearing gold.

* Markets await U.S. monthly jobs report scheduled for release at 08:30 a.m. EST on Friday. Economists expect 978,000 new U.S. jobs for April, according to a Reuters poll. Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell below 500,000 last week for the first since the COVID-19 pandemic started more than a year ago. The economic outlook is brightening but more improvements are needed before the Federal Reserve will start to scale back monetary support, Cleveland Fed Bank President Loretta Mester said on Thursday. Palladium XPD= eased 0.1% to $2,942.82 per ounce, moving further away from an all-time high of $3,017.18 hit earlier this week.

* Silver XAG= edged 0.1% lower to $27.26 per ounce, while platinum XPT= was steady at $1,252.41.

DATA/EVENTS (GMT) 0145 China

Caixin Services PMI April 0600 Germany Industrial Output MM March 0645 France Reserve Assets Total April 1230 US

Non-Farm Payrolls

April 1230 US

Unemployment Rate

April N/A China

Exports, Imports YY April N/A China

Trade Balance

April

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