Gold resumes climb as U.S. dollar, yields pull back
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Gold neared a one-month high on Thursday as a pullback in the dollar and U.S. Treasury yields provided support ahead of a key U.S. jobs report that could influence the Federal Reserve's policy stance.
Spot gold rose 0.7% to $1,777.91 per ounce by 0935 GMT, while U.S. gold futures gained 1% to $1,794.10.
There are factors building that could be supportive to gold in the short term, including recession concerns, OANDA analyst Craig Erlam said.
"The Fed is really out in force this week trying to reinforce its message about the possibility of a larger September hike and not quickly reversing course next year, but investors seem keen to push back against that idea."
Some U.S. central bank officials have voiced their determination to rein in high inflation, although one noted a half-percentage-point hike in its key interest rate next month might be enough to march towards that goal.
Gold is highly sensitive to higher interest rates as they increase the opportunity cost of holding non-yielding bullion.
Lending support to gold, benchmark U.S. 10-year Treasury yields slipped from their highest levels in more than a week, while the dollar also eased. [US/] [USD/]
Investors now await the outcome of the Bank of England's policy decision at 1100 GMT.
"Don't expect a UK rate hike to be of much impact, except to maybe raise concerns about a central bank raising rates into a recession, prompting fears of a deeper economic fall," said independent analyst Ross Norman.
Investors are also on the lookout for U.S. jobs data due on Friday.
Spot silver rose 0.7% to $20.18 per ounce, platinum gained about 1% to $906.57 and palladium added 1.9% to $2,056.03.
