New York August 5 2022: Gold prices climbed over 1% to hit a fresh one-month peak on Thursday, underpinned by a retreat in the dollar and U.S. Treasury yields, as investors kept a close tab on U.S.-China tensions.
Spot gold rose 1.6% to $1,792.19 per ounce by 1:56 p.m. ET (1756 GMT), having risen to its highest since July 5 earlier. U.S. gold futures settled 1.7% higher at $1,806.90.
“As of late, yields are coming down slightly. That has been along with the dollar’s recent weakness, one of the key benefits to gold,” said David Meger, director of metals trading at High Ridge Futures.
The dollar’s retreat bolstered gold’s appeal among overseas buyers, while benchmark U.S. Treasury yields also slipped, reducing the opportunity cost of holding non-yielding bullion.
“We’ve seen some rising tensions between the U.S. and China, so (that’s) one additional reason why gold has been well supported coming into the morning,” Meger added.
China fired multiple missiles near Taiwan in its biggest ever military drills in the Taiwan Strait one day after U.S. House of Representatives Speaker Nancy Pelosi visited the self-ruled island.
Elsewhere, spot silver rose 0.8% to $20.20 per ounce.
Platinum jumped 3.4% to $928.71 while palladium rose 2.7% to $2,070.58.