Gold Price Report | Gold Rises Peak as Traders Look for Fresh Economic Cues According to CNBC | August 1rst, 2022:
Gold climbed Monday, buoyed by a softer dollar, while investors absorbed the latest economic readings for signs on the future pace of interest rate hikes.
Spot gold gained 0.1% to $1,766.97 per ounce. U.S. gold futures also rose 0.12% to $1,783.9.
The dollar slipped, making gold less expensive for overseas investors. But higher U.S. 10-year Treasury yields kept a tight leash on non-yielding bullion's gains.
"The softer dollar should make it easier for gold to register more gains, though rising nominal and real yields on U.S. Treasuries today are hindering bullion's ability to add to last week's advance," said Han Tan, chief market analyst at Exinity.
Gold rose 2.2% last week, its best performance since March, after Federal Reserve Chair Jerome Powell struck a relatively less hawkish tone following an expected 75 basis-point rate hike.
"(However) bullion bulls are waiting to see if the coast is clear for another leg up, making sure expectations for a less-aggressive Fed are indeed rooted in reality," Tan said, adding, "like the Fed, gold's next move may be data dependent."
Safe-haven gold has also found some support from recent weak economic data, including an unexpected contraction in the U.S. economy over the second quarter, and slower euro zone manufacturing activity.
Gold "could benefit from safe-haven flows if countries are thrown into recession and central banks are left to choose between hitting inflation targets or the economy," said Craig Erlam, senior market analyst at OANDA.
The monthly U.S. jobs report on Friday will also be closely scanned for its likely influence on the Fed's rate hike plans.