Gold at 3-week low as strong US data bolsters dollar, bond yields

Singapore, Aug. 3 (BNA): Gold prices held near three-week lows on Thursday after strong U.S. private payrolls data suggested the economy could avoid a recession, fuelling bets of more monetary policy tightening and, in turn, boosting the dollar and Treasury yields.

 

Spot gold was little changed at $1,936.07 per ounce by 0741 GMT, having hit its lowest since July 11. U.S. gold futures fell 0.2% to $1,971.90, Reuters reported.

 

The U.S. dollar index rose to a four-week peak and benchmark 10-year Treasury yields were at their highest since November after data on Wednesday showed U.S. private payrolls rose more than expected last month.

 

Brian Lan of Singapore dealer GoldSilver Central expects gold to test a support at about $1,933 and, if breached, prices could fall to $1,920.

 

Spot silver fell 0.7% to $23.58 an ounce and platinum dropped 0.3% to $918.43, both near three-week lows. Palladium slid 0.9% to $1,232.44.

 

 

ZH