Yields slip ahead of Powell’s Friday speech

NEW YORK – Yields on US government debt eased on Monday as the market counted down to Federal Reserve Chair Jerome Powell’s keynote speech at the Jackson Hole symposium at the end of the week.

There is little in the way of data to divert attention before then.

The Conference Board said on Monday its leading economic index fell 0.6% in July. That was worse than June’s 0.2% fall and the 0.3% decline expected by economists polled by Reuters. But the index is a secondary indicator and Treasuries stayed in their narrow ranges.

On Wednesday, the Labor Department will release a preliminary revision to 2024 payrolls through March, potentially a market factor if it shows a much different labor picture than the Fed has been banking on as it moves toward cutting interest rates.

Flash PMIs, July home sales, and weekly unemployment claims round things out on Thursday but, barring big surprises, are unlikely to upset markets.

The minutes of the Fed’s July meeting will be released on Wednesday, which will be backward-looking when investors are 100% focused on what the Fed will do at its Sept. 17-18 meeting.

“It’s super benign. The curve has barely moved, you are not seeing much happening in peripheral things like swap spreads and inflation expectations,” said Jan Nevruzi, US rates strategist at TD Securities in New York.

High rates may be on the way out, and Powell could provide more information about the approach to policy easing in his Friday speech at the Kansas City Fed’s annual conference in Wyoming.

Fed speakers in recent days have laid the groundwork for Powell’s Jackson Hole remarks.

In an interview with the Financial Times published on Sunday, San Francisco Federal Reserve Bank President Mary Daly said it is time to consider adjusting borrowing costs from their current range of 5.25% to 5.5%.

Minneapolis Fed President Neel Kashkari said the debate about potentially cutting rates in September is an appropriate one to have because of a rising possibility of a weakening labor market, the Wall Street Journal reported on Monday.

“The balance of risks has shifted,” Kashkari told the Journal in an interview conducted on Friday.

“The interesting things of the week will be the (Fed) minutes and then the benchmark revision on payrolls, both on Wednesday, and of course Powell on Friday morning,” said Lou Brien, market strategist at DRW Trading in Chicago.

Based on the fed funds futures term structure, traders see about a 78% chance of a 25 basis points easing of the policy rate, which has been in its current target range since the Fed stopped hiking rates in July 2023.

“On the one hand, Powell could just confirm what almost everyone already assumes: The Fed will cut rates next month. On the other hand, he could feel no compulsion to confirm it when there is still employment and inflation data to be released before the Sept. 18 decision,” Will Compernolle, macro strategist at FHN Financial said in a client note on Monday.

The yield on the benchmark US 10-year note fell 2.8 basis points from late Friday to 3.864%.

The two-year note yield, which typically moves in step with interest rate expectations, fell 0.4 basis points to 4.0618%.

The 30-year bond yield fell 4 basis points to 4.1114%.

The closely watched gap between yields on two- and 10-year Treasury notes, considered a gauge of growth expectations, was at negative 20 bps, a bit more inverted than Friday’s negative 17.1 bps.

The implied breakeven inflation rate on 10-year Treasury Inflation Protected Securities (TIPS) was slightly higher at 2.0712%.

The five-year TIPS breakeven inflation rate slipped to 1.9607%, suggesting that investors think annual inflation will average below the Fed’s 2% target rate for the next five years.

(Reporting by Alden Bentley; editing by Jonathan Oatis)

Gold subdued after record run as traders await cues from Fed

Gold subdued on Monday after piercing the USD 2,500 ceiling in the previous session, as investors booked profits from the record run and positioned for more cues from the US Federal Reserve and developments in the Middle East.

Spot gold was down 0.2% at USD 2,501.74 per ounce as of 01:41 p.m. ET (1741 GMT), shy of the record high of USD 2,509.65 hit on Friday. US gold futures settled 0.1% higher at USD 2,541.30.

“We will not be surprised to see some consolidation/pull-back in the gold market as traders may be disappointed if the Fed only indicates a likelihood of a 0.25 bp rate cut and does not hint at the possibility of a larger 0.50 bp cut,” David Meger, director of alternative investments and trading at High Ridge Futures, said.

Traders see a 77.5% chance of the Fed cutting interest rates by 25 basis points (bps) in September, according to the CME FedWatch Tool.

The focus will turn to minutes from the Fed’s last policy meeting on Wednesday and Chair Jerome Powell’s speech at an economic symposium in Jackson Hole on Friday.

Gold may fall into the USD 2,479-USD 2,487 range following its failure to break resistance at USD 2,507, according to Reuters technical analyst Wang Tao.

But UBS analyst Giovanni Staunovo said gold could rise further in the coming months, likely reaching USD 2,600/oz by end-year, adding all eyes will be on any indication of an imminent rate cut from Powell.

On the physical front, several Chinese banks have been given new gold import quotas from the central bank, anticipating revived demand despite record-high prices.

Gold demand is strong as geopolitical tensions, particularly from the Israel-Iran-Hamas conflict, drive safe-haven buying, Achilleas Georgolopoulos, investment analyst at forex broker XM, wrote in a note.

Silver rose 0.8% to USD 29.24 per ounce. Platinum gained 0.3% to USD 957.57, while palladium shed 2.1% to USD 930.92.

(Reporting by Anushree Mukherjee and Sherin Elizabeth Varghese in Bengaluru; Editing by Alan Barona, Barbara Lewis, and Shreya Biswas)

Oil falls by more than USD 2 a barrel on Gaza ceasefire talks and weak Chinese economy

NEW YORK – Oil prices fell by more than USD 2 a barrel Monday on the prospect of successful Middle Eastern peace talks reducing supply risks, while leading oil importer China’s economic weakness threatened to curb demand.

Brent crude futures settled at USD 77.66 a barrel, dropping USD 2.02, or 2.5%. US West Texas Intermediate crude futures settled at USD 74.37 a barrel, falling USD 2.28, or 3%.

“This market is under pressure under expectations that they’re going to continue to hammer away at the ceasefire talks,” said Bob Yawger, director of energy futures at Mizuho in New York.

US Secretary of State Antony Blinken on Monday said the latest diplomatic push by Washington to achieve a ceasefire deal in Gaza was “probably the best, maybe the last opportunity” and implored all stakeholders to get the agreement over the finish line.

Israeli Prime Minister Benjamin Netanyahu’s office said the he “reiterated Israel’s commitment to the latest American proposal regarding the release of our hostages – taking into account Israel’s security needs.”

“Much of the past week’s selling across the energy complex has represented a reduction in Mideast risk premium,” said Jim Ritterbusch, of Ritterbusch and Associates in Florida.

China’s economic problems also pressured oil prices, with data last week showing new home prices falling at the fastest pace in nine years. Chinese refineries sharply cut crude processing rates last month in response to weak fuel demand.

Both crude benchmarks fell nearly 2% on Friday as investors tempered their Chinese demand growth expectations, but ended the week largely unchanged after US data showed inflation was moderating despite robust retail spending.

“Persistent concerns about slow demand in China led to a sell-off,” said Hiroyuki Kikukawa, president of NS Trading, adding that the approaching end of peak driving season in the United States was another factor weighing on prices.

However, supply risks from continued tensions in the Middle East and escalation of the Russian-Ukraine war are underpinning the market, he said.

Energy investors also awaited clues on the US Federal Reserve’s next interest rates decision.

A slim majority of economists polled by Reuters said they expected that the Fed would cut interest rates by 25 basis points at each of the remaining three meetings this year, one more reduction than predicted last month, and that a recession was unlikely.

Rate cuts could stir economic activity in the world’s top oil-consuming country.

(Reporting by Laila Kearney in New York, Paul Carsten and Alex Lawler in London, Yuka Obayashi in Tokyo, and Colleen Howe in Beijing; Editing by David Goodman, Shounak Dasgupta, Jonathan Oatis, and Barbara Lewis)

Asia shares underpinned, dollar undermined by dovish Fed wagers

SYDNEY – Asian stocks edged up and the dollar slid on Monday after global equities enjoyed their best week in nine months on expectations the US economy would dodge a recession and cooling inflation would kick off a cycle of interest rate cuts.

The prospect of lower borrowing costs saw gold clear USD 2,500 an ounce for the first time and the dollar dip against the euro, while the yen made a sudden lunge higher that weighed on the Nikkei.

Federal Reserve members Mary Daly and Austan Goolsbee were out over the weekend to flag the possibility of easing in September, while minutes of the last policy meeting due this week should underline the dovish outlook.

Fed Chair Jerome Powell speaks in Jackson Hole on Friday and investors assume he will acknowledge the case for a cut.

“Although it may be too early to declare victory – and central bankers will certainly be prudent to avoid this in their official rhetoric – the inflation scare that had dominated the policy debate since prices started to soar during the pandemic has now largely vanished,” said Barclays economist Christian Keller.

“Inflation may not be quite at the 2% target yet, but it is close and going in the right direction.”

Futures are fully priced for a quarter-point move, and imply a 25% chance of 50 basis points with much depending on what the next payrolls report shows.

Analysts at Goldman Sachs cautioned that annual benchmark revisions to the jobs series are due on Wednesday which could see a large downward revision of between 600,000 and one million positions, though this would likely overstate the weakness of the labor market.

For now, the expectation of a softer-than-soft landing for the US economy has S&P 500 futures ESc1 up 0.2% and Nasdaq futures ahead by 0.3%, on top of last week’s gains.

EUROSTOXX 50 futures added 0.2% and FTSE futures eased 0.1%.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 1.0%, having rallied 2.8% last week.

Japan’s Nikkei fell 1.2% as the yen rose, though that followed a near 9% bounce last week. Chinese blue chips firmed 0.4%.

The Fed is hardly alone in contemplating looser policy, with Sweden’s central bank expected to cut rates this week, and possibly by an outsized 50 basis points.

In currency markets, the dollar lapsed 1.0% to 146.20 yen, and further away from last week’s top of 149.40. The euro firmed to USD 1.1030, just below last week’s peak of USD 1.1047.

“The overall Fed message this week is likely to reassure market participants looking for confirmation that policy rate cuts are now imminent,” said Jonas Goltermann, deputy chief markets economist at Capital Economics.

“As such, the greenback may well remain under pressure in the near term, although given the extent to which Fed easing is already discounted, we doubt there is that much further dollar weakness in store.”

A softer dollar combined with lower bond yields to help gold hold at USD 2,500 an ounce, and near an all-time peak of USD 2,509.69.

Oil prices dipped again as concerns about Chinese demand continued to weigh on sentiment.

Brent fell 11 cents to USD 79.57 a barrel, while US crude lost 20 cents to USD 76.45 per barrel.

(Reporting by Wayne Cole; Editing by Christopher Cushing)

China’s coal output rises as share of electricity slips: Russell

LAUNCESTON, Australia – China’s production of coal is rising while its share of electricity generation is declining, a seeming contradiction that will likely result in lower import volumes and lower prices.

Coal output rose 2.8% in July from the same month a year earlier, hitting 390.37 million metric tons, according to data released on Aug. 15 by the National Bureau of Statistics.

July’s output was down from June’s 405.38 million tons, which was the strongest month so far this year. July was also the third-highest monthly production so far in 2024 and output has been trending higher since April.

The rising availability of coal in the world’s biggest producer, importer, and consumer of the fuel hasn’t translated into an increased share of the total electricity generation, the primary use for the fuel.

Instead, China’s coal-fired power is losing market share to cleaner alternatives, a trend likely to continue, given the ongoing rapid installation of solar, and to a lesser extent, wind capacity.

China’s thermal power generation dropped in July for a third month on a year-earlier basis, despite rising overall power consumption.

Thermal power output, which is largely coal-fired with only a small amount of natural gas generation, fell 4.9% in July from the same month in 2023 to 574.9 billion kilowatt-hours (kWh).

Total generation rose 2.5% to 883.1 billion kWh, with hydropower output jumping 36.2% to 166.4 billion kWh.

China is experiencing a hotter-than-usual summer, which has boosted electricity demand for cooling.

Hydropower is increasing off a low base in 2023, when output was affected by low rainfall.

Other clean energy generation is also grabbing a higher share, with solar up 16.4% in July and nuclear increasing 4.3%.

China has ramped up installations of renewable energy, with 102 gigawatts (GW) of capacity being added in the first half of 2024, taking total capacity to more than 700 GW.

About 26 GW of wind capacity was added in the first six months of 2024, with the combined wind and solar additions being almost seven times the 18.3 GW of new coal-fired generation.

MARKET DYNAMICS

The recovery in hydropower and the rapid rollout of solar, coupled with rising coal production, are likely to alter the dynamics of the thermal coal market in China.

Domestic prices have started to decline, with the benchmark price of thermal coal at Quinhuangdao, as assessed by consultants SteelHome, slipping to end at 835 yuan ($116.55) a ton on Aug. 16.

It has trended lower since its most recent peak of 885 yuan a ton on May 28, and has dropped 11.2% since the peak so far in 2024 of 940 yuan on Feb. 27.

The lower domestic price has meant that thermal coal imported from Indonesia and Australia, the world’s two biggest exporters of the fuel and the top suppliers to China, has also had to adjust through lower prices.

Indonesian coal with an energy content of 4,200 kilocalories per kilogram (kcal/kg) IDIDX42GRW1=ARG, as assessed by commodity price reporting agency Argus, ended at $51.18 a ton in the week to Aug. 16.

This was the lowest in 11 months and the price has dropped 12% since its high so far this year of $58.17 a ton in the week to March 8.

Australian coal with an energy content of 5,500 kcal/kg API5IDXWKY=ARG finished at $86.78 a ton in the seven days to Aug. 16, down 10.2% from its peak so far in 2024 of $96.66 in the week to March 1.

The softer seaborne coal prices have helped keep import volumes strong so far in 2024, with official data showing imports of all grades of coal rising 13.3% in the first seven months of the year to 295.78 million tons.

But data from commodity analysts Kpler suggests that seaborne imports of thermal coal are starting to ease back.

Kpler assessed July seaborne thermal coal arrivals at 28.56 million tons, down from 29.38 million in June and 30.67 million in May.

For August, it’s possible that thermal coal imports will drop for a third month, with Kpler estimating arrivals of 28.26 million tons.

With domestic coal output recovering and prices easing, its likely that seaborne cargoes will have to decline in price to remain competitive.

The opinions expressed here are those of the author, a columnist for Reuters.

(By Clyde Russell; Editing by Christopher Cushing)

Dollar falls on bets for dovish Fed

SINGAPORE – The US dollar declined broadly on Monday and slid against the yen in particular as investors bet on a dovish tone emerging in the Federal Reserve’s July policy meeting minutes and Chair Jerome Powell’s upcoming speech at Jackson Hole.

The minutes, due on Wednesday, and Powell’s speech on Friday are likely to be the main drivers of currency movement for the week, which will also see inflation data from Canada and Japan alongside Purchasing Managers’ Index readings across the US, euro zone, and UK.

Against the yen, the greenback fell more than 0.8% to 146.37, retreating from a two-week high of 149.40 yen hit last week, though analysts said the sharp move lower was largely due to broad dollar weakness.

Bank of Japan (BOJ) Governor Kazuo Ueda is set to appear in parliament on Friday, where he is expected to discuss the central bank’s decision last month to raise interest rates.

The BOJ’s hawkish tilt last month contributed to the early August market turbulence in the wake of an epic unwinding of yen-funded carry trades, triggering a heavy selloff in risk assets and sending stock markets, including the Nikkei, crashing.

The volatility back then was compounded by a slew of softer-than-expected US economic data – in particular, a weak jobs report for July, as investors feared the world’s largest economy was headed for a recession and that the Fed was being slow in easing rates.

With those worries now moderating, the yen has since given up some of its strong gains, and Japanese investment data on Friday confirmed that investors were back to betting on the BOJ going slow on rate rises and on the yen staying cheap.

“The thing with carry trades is that it’s impossible to tell with any confidence about the size of the trades,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

“We aren’t so sure whether or not that unwind has more room to go or how much left of that unwinding (there is), but just based on the very sharp moves down in dollar/yen, I really doubt that pace will sustain going forward.”

Elsewhere, the euro last bought USD 1.1039, edging towards an over seven-month high of USD 1.10475 hit last week. Sterling rose to a one-month high of USD 1.2960 earlier in the session and was last at USD 1.2957.

Against a basket of currencies, the dollar lost 0.24% to 102.21, not far from a seven-month low of 102.15.

Traders have fully priced in a 25-basis-point rate cut from the Fed in September, with a 24.5% chance of a 50 bp move. Futures point to over 90 bps worth of easing by year-end.

“Markets will be laser-focused to what Powell has to say at the end of this week, and on that, I think it will be a great opportunity for Powell to either endorse or push back market pricing,” said CBA’s Kong.

“I think he’ll at least greenlight a rate cut at the September meeting. If anything, I think he’ll try to retain optionality because we do have some more data before the next meeting.”

The New Zealand dollar gained 0.43% to USD 0.6078, while the Australian dollar struck a one-month top of USD 0.6694, as risk sentiment picked up on expectations for a dovish Fed outcome.

The Aussie was also helped in part by the paring of bets for imminent rate cuts Down Under, after Reserve Bank of Australia Governor Michele Bullock said on Friday it was premature to be thinking about rate cuts.

(Reporting by Rae Wee; Editing by Christopher Cushing and Edwina Gibbs)

Japan’s Nikkei surges over 2% as US retail sales data eases recession fears

TOKYO – Japan’s Nikkei share average got off to a strong start in early trade on Friday, tracking Wall Street higher as an increase in US retail sales soothed fears of a recession in the world’s largest economy and top Japanese trading partner.

The Nikkei was up 2.5% at 37,639.99 as of 0009 GMT, while the broader Topix rose 2.3%.

Wall Street’s main indexes closed higher on Thursday after US retail sales for July increased 1% following a downwardly revised 0.2% drop in June, easing fears of a sharp economic slowdown fanned by a jump in the unemployment rate last week.

The Philadelphia SE Semiconductor index finished up nearly 5% to give Japanese chip-related shares a boost on Friday.

(Reporting by Brigid Riley; Editing by Christian Schmollinger)

US corporate bond spreads recover on promising economic data

US corporate bond spreads, the premium over Treasuries that companies pay for debt, are starting to recoup some lost ground after recent strong economic data increased hopes for interest rate cuts and calmed recession fears.

Investment-grade corporate bond spreads on Wednesday tightened by 3 basis points to 105 basis points (bps), according to the ICE BofA Corporate US Corporate Index.

Junk bond spreads finished Wednesday at 346 bps, also 3 bps tighter this week, according to the ICE BofA High Yield Index.

Both high-grade and junk bond spreads retraced much of early August’s dramatic widening, after surprisingly weak July jobs and productivity reports prompted concerns of a sharp economic downturn and potential recession.

Economic data this week appears to have calmed recession fears. US consumer prices in July rose at their slowest pace in nearly 3-1/2 years, while the cost of services fell by the most in nearly 1-1/2 years.

Other data this week pointed to economic growth, including July retail sales that rose more than expected.

“The primary driver of tighter credit spreads this week is the Goldilocks narrative of growth without inflation,” said Nelson Jantzen, a strategist who covers high-yield bonds, leveraged loans, and distressed leveraged credit at JPMorgan.

The data has further assured credit investors that the Federal Reserve has finished hiking interest rates and will begin cutting rates as soon as September.

Forecasts now see a 76.5% probability of a 25 bp Fed rate cut in September, according to CME’s FedWatch Tool, up from 64% on Wednesday.

“Recent data has given the market more comfort around the likelihood of more accommodative policy at the next FOMC meeting, and this has given investors increased confidence that a substantial rise in rates is less likely,” said Blair Shwedo, head of fixed-income sales and trading at US Bank.

Renewed optimism was helped by an overall lack of negative surprises in borrowers’ second-quarter earnings disclosures, market participants said.

“Financials aside, consumer discretionary and industrial companies were among the next strongest performers during Q2 earnings season, likely providing some support for services and basic material sectors during the widening” of credit spreads in early August, said Dan Krieter, director of fixed income strategy at BMO Capital Markets

Almost USD 25 billion in new high-grade debt has sold this week, versus forecasts of a weekly total of USD 30 billion heading into the week, said Krieter.

Junk debt issuance has also recovered this week following its lightest showing of 2024 last week, albeit at a slower pace than high-grade deals, said Jantzen.

(Reporting by Matt Tracy; Editing by Leslie Adler)

Dollar holds gains on reassuring data, euro slips

NEW YORK – The dollar held gains against the euro on Thursday, pulling the European common currency back from a seven-month peak, after US economic data eased fears of a recession risk and dampened expectations for aggressive interest-rate cuts.

US retail sales rose more than expected in July, a sign that demand is not collapsing and which could prompt financial markets to dial back expectations for a 50-basis-point rate cut next month.

Additionally, fewer Americans than expected filed for unemployment benefits in the latest week, suggesting an orderly labor market slowdown remained in place, although laid-off workers are finding it a bit difficult to land new jobs.

The euro fell 0.36% versus the dollar at USD 1.0973. It reached USD 1.10475, its highest level this year, on Wednesday, as markets digested US inflation numbers.

The dollar index rose 0.42% to 103.03, and moved away from the eight-month low of 102.15 touched last week.

“The data this morning goes counter to the recent market narrative of a Fed that is drastically behind the curve and would have to deliver jumbo rate cuts to avert a recession,” said Peter Vassallo, FX portfolio manager at BNP Paribas Asset Management. “Market pricing has adjusted accordingly, and short-term US rates have risen significantly on the day.”

The pound was up 0.17% at USD 1.2849, as data showed Britain’s economy grew 0.6% in the second quarter, in line with economists’ expectations and building on a rapid 0.7% recovery in the first quarter of the year.

The pound also strengthened on the euro, which dipped 0.53% to 85.38 pence.

Thursday’s US data follow Wednesday’s release of the consumer price index, which rose moderately in July, in line with expectations, and the annual increase in inflation slowed to below 3% for the first time since early 2021.

The figures add to the mild increase in producer prices in July in suggesting that inflation is on a downward trend, although traders now think the Fed will not be as aggressive on rate cuts as they had hoped.

“This morning’s data absolutely crushed remaining bets on a half percentage-point move at the Federal Reserve’s September meeting,” said Karl Schamotta, chief market strategist at Corpay.

“Fear of a ‘hard landing’ in the US economy has been almost fully unwound,” he said, “and Fed officials are seen responding with a more cautious start to the easing cycle.”

Markets are now pricing in a 74.5% chance of a 25 bps cut next month and a 25.5% chance of a 50 bps reduction, the CME FedWatch tool showed. Traders were evenly split at the start of the week between the two cut options following last week’s sell-off.

The yen was at 149.13 per dollar, inching away from the seven-month high of 141.675 per dollar touched during last week’s market mayhem and well beyond the 38-year lows of 161.96 it was rooted to at the start of July.

Bouts of intervention from Tokyo early last month and then a surprise rate hike from the Bank of Japan at the end of July wrong-footed investors who bailed out of popular carry trades, lifting the yen.

“Currency markets are suffering whiplash, with the dollar climbing against its rivals on a re-widening in rate differentials,” Schamotta said. “Rumors of the death of the ‘US exceptionalism’ trade look to have been exaggerated, yet again.”

(Reporting by Laura Matthews in New York and Alun John in London; additional reporting by Ankur Banerjee in Singapore; editing by David Evans, Jonathan Oatis, and Leslie Adler)

Gold pares gains as dollar, bond yields climb after strong US data

Gold prices pared gains on Thursday as the dollar and Treasury yields rose after stronger-than-expected US economic data that could influence the size of interest rate cuts from the Federal Reserve.

Spot gold was up 0.3% at USD 2,454.40 per ounce, as of 1:46 p.m. EDT (1746 GMT), after rising as much as 0.9% earlier in the session. US gold futures GCcv1 settled 0.5% higher at USD 2,492.40.

“Retail sales being so positive shows the economy is strong and that has kind of turned the markets, and the dollar is regaining some of its strength, and gold’s losing some of its lustre,” said Chris Gaffney, president of world markets at EverBank.

US retail sales increased 1.0% last month after a downwardly revised 0.2% drop in June, the Commerce Department’s Census Bureau said.

Separately, a Labor Department report showed the number of Americans filing new applications for unemployment benefits dropped to a one month-low last week.

Following the US data, the dollar rose 0.5% against its rivals, making gold more expensive for other currency holders, while benchmark 10-year Treasury yields US10YT=RR also jumped.

Meanwhile, two Fed officials on Thursday lined up behind the possibility of an interest rate cut at the US central bank’s policy meeting next month, reversing their previous skepticism about lowering borrowing costs too soon.

Markets see a 100% chance of a US cut rate in September, according to the CME FedWatch Tool. However, strong data has taken a 50 basis point cut off the table.

A low interest rate environment tends to boost non-yielding bullion’s appeal.

“The political uncertainties will continue to be positive for gold prices, but they’ll also add to the volatility,” said Jeffrey Christian, managing partner of CPM Group.

Spot silver gained 2.6% to USD 28.30 per ounce. Platinum jumped 3.8% to USD 954.65 and palladium rose 0.5% to USD 940.04.

“The industrial precious metals like silver and platinum benefited from stronger data this morning because of the expected increase in demand with a stronger economy,” Gaffney said.

(Reporting by Rahul Paswan and Brijesh Patel in Bengaluru; Editing by Mohammed Safi Shamsi and Maju Samuel)

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