Aug 24 (Reuters) – Gold prices climbed to two-week highs on Thursday as a retreat in the US dollar and Treasury yields revived investors’ appetite for bullion as they wait to see what interest rate signals central bankers offer at the Jackson Hole meeting.
Spot gold was up 0.3% at USD 1,920.79 per ounce by 0629 GMT, hitting its highest level since Aug. 10. US gold futures GCcv1 were flat at USD 1,948.70.
The Federal Reserve is holding its annual symposium in Jackson Hole, Wyoming, from Aug. 24-26, with investors’ looking towards Chair Jerome Powell’s speech on Friday for confirmation on whether interest rates are going to stay higher for longer.
Higher US rates raise the opportunity cost of holding gold, which yields no interest.
The dollar and US yields were pulled back after softer-than-expected global economic data.
“The weaker (PMI survey) result pares the risk of further rate hikes in the US and Europe in our view, which is broadly positive for gold prices and applies downward pressure to US Treasury yields,” said Baden Moore, head of carbon and commodity strategy at National Australia Bank.
US business activity approached the stagnation point in August, with growth at its weakest since February, while Britain’s economy is also slowing and might be heading for a recession.
Traders also firmed up bets that the European Central Bank
would pause rate hikes in September as sharp contractions in business activity pointed to deepening economic pain.
Spot gold may extend gains into a range of USD 1,928-USD 1,934 per ounce, said Reuters technical analyst Wang Tao.
Spot silver fell 0.5% to USD 24.19 per ounce and platinum eased 0.1% to USD 926.86. Palladium ropped 0.9% to USD 1,263.03.
For silver, immediate resistance at USD 24.50 will be on watch next and moving past this level may potentially pave the way to retest its year-to-date high of around USD 26, Yeap Jun Rong, a market strategist at IG said.
(Reporting by Swati Verma in Bengaluru; Editing by Sonia Cheema and Sohini Goswami)
This article originally appeared on reuters.com