Gold prices rose more than 1% to a new one-month high on Thursday, supported by a retreat in the dollar and US Treasury yields, as investors closely watched an exchange of criticism between the United States and China. .
Spot gold rose 1.6% to $1,792.19 per ounce by 1756 GMT, having hit a high since July 5. US gold futures gained 1.7% to $1,806.90.
“Yields are coming down a bit lately. That has been, along with recent dollar weakness, one of the main benefits for gold,” said David Meger, director of metals trading at High Ridge Futures.
The dollar’s decline bolstered gold’s appeal to foreign buyers, while benchmark US Treasury yields also fell, lowering the opportunity cost of holding non-yielding bullion.
“We’ve seen an increase in tension between the US and China, so that’s an additional reason why gold has been well supported going into the morning,” Meger added.
China fired multiple missiles near Taiwan in its largest-ever military exercises in the Taiwan Strait, a day after US House Speaker Nancy Pelosi visited the island.
Investors also took stock of data that showed the number of Americans filing new jobless claims rose last week, and are keeping an eye on the US Non-Farm Payrolls report due out on Friday.
Spot silver was up 0.8% at $20.20 an ounce. Platinum advanced 3.4% to $928.71 and palladium gained 2.7% to $2,070.58.
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