Gold prices extend gains as equities, bond yields weaken

Reuters

Gold prices extend gains as equities, bond yields weaken

9:17 sáng giờ GMT, 16 Tháng 10 2024

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Fed's Daly says cenbank likely on track for more rate cuts

Gold industry sees prices rising to $2,941/oz over 12 months

Benchmark 10-year note yields slipped to over one week low

Updates prices as of 1033 GMT

By Daksh Grover

Oct 16 (Reuters) -Gold prices extended gains to a second session on Wednesday, driven by weaker equities and bond yields, while traders eagerly await U.S. economic data to gauge the Federal Reserve's timeline on a potential rate reduction.

Spot gold XAU= was up 0.5% at $2,675.25 per ounce, as of 1033 GMT, and trading about $10 below a record high of $2,685.42 scaled last month. U.S. gold futures GCcv1 gained 0.5% to $2,691.90.

"Seems the gold market wants to see a record high, with prices marginally below the late-September record high with support coming from a slightly risk-off environment with equities down," UBS analyst Giovanni Staunovo said. MKTS/GLOB

Safe-haven bullion tends to be a preferred investment in a low interest rate environment and during economic and geopolitical turmoil.

"The uncertainly surrounding U.S. elections and geopolitical tensions will also support gold going forward," said ANZ commodity strategist Soni Kumari.

The benchmark 10-year note yields US10YT=RR slipped to more than a one-week low, making non-yielding gold more attractive. US/

Market participants are keeping a keen eye on U.S. retail sales, industrial production and weekly jobless claims data, due on Thursday.

Gold needs a stronger-than-expected data to change the rate-cut trajectory, but this should still boost investment demand and drive prices to a record high in the coming months, UBS' Staunovo said.

San Francisco Federal Reserve Bank President Mary Daly said the central bank remains on track for more cuts this year as long as data meets expectations.

Delegates at the London Bullion Market Association's annual gathering predicted gold prices would rise to $2,941 over the next 12 months and silver prices would jump to $45 per ounce.

Spot silver XAG= firmed 1.1% to $31.83. Platinum XPT= rose 0.6% to $990.05 and palladium XPD= was up 0.6% to $1,015.75.

The Guangzhou Futures Exchange (GFEX) will launch platinum and palladium futures in Q1 2025, according to the producers' council.

Spot gold price in USD per oz https://reut.rs/3UeTcAv

Reporting by Daksh Grover and Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips, Elaine Hardcastle

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