Gold companies near 1-month high on weaker dollar, concern over slowdown

Gold prices strengthened on Friday near a one-month high as a decline in dollar and U.S. Treasury yields and growing fears of a recession boosted demand, keeping the metal safe haven on track for its third straight weekly gain.

FUNDAMENTALS


* Spot gold rose 0.2% to $1,793.88 an ounce, as of 0054 GMT, after hitting its highest level since July 5 on Thursday. Bullion is up 1.6% so far this week.

* US gold futures rose 0.2% to $1,810.60.

* The dollar struggled to gain a foothold on Friday after falling 0.6% overnight against its rivals, making gold more attractive to other currency holders.

* The yield on 10-year Treasury bills also slipped, reducing the opportunity cost of holding non-interest-bearing gold.

* The Bank of England raised interest rates to the highest in 27 years on Thursday in a bid to stifle soaring inflation on track to hit 13%, even as it warned a long recession was coming.

* The monthly U.S. nonfarm payrolls report will be closely watched on Friday, which could offer more clarity on the Federal Reserve’s aggressive tightening plans to fight inflation.

* Economists expect an increase of 250,000 jobs for the month of July. Meanwhile, Thursday’s data showed the number of Americans filing new claims for unemployment benefits rose last week.

* China fired several missiles near Taiwan in its biggest-ever military exercises in the Taiwan Strait after US House of Representatives Speaker Nancy Pelosi visited the self-governing island.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03% to 1,000.32 tonnes on Thursday.

* Spot silver rose 0.2% to $20.21 an ounce, platinum gained 0.9% to $934.25 and palladium climbed 1.1% to 2,086.68 $.

DATA/EVENTS (GMT)


0600 Germany Industrial production MM, YY June

0600 United Kingdom House prices in Halifax MM, YY July

0645 France Reserve assets Total July

1230 US Non-Farm Payrolls July

1230 U.S. Unemployment Rate July

Gold prices strengthened on Friday near a one-month high as a decline in dollar and U.S. Treasury yields and growing fears of a recession boosted demand, keeping the metal safe haven on track for its third straight weekly gain.

FUNDAMENTALS


* Spot gold rose 0.2% to $1,793.88 an ounce, as of 0054 GMT, after hitting its highest level since July 5 on Thursday. Bullion is up 1.6% so far this week.

* US gold futures rose 0.2% to $1,810.60.

* The dollar struggled to gain a foothold on Friday after falling 0.6% overnight against its rivals, making gold more attractive to other currency holders.

* The yield on 10-year Treasury bills also slipped, reducing the opportunity cost of holding non-interest-bearing gold.

* The Bank of England raised interest rates to the highest in 27 years on Thursday in a bid to stifle soaring inflation on track to hit 13%, even as it warned a long recession was coming.

* The monthly U.S. nonfarm payrolls report will be closely watched on Friday, which could offer more clarity on the Federal Reserve’s aggressive tightening plans to fight inflation.

* Economists expect an increase of 250,000 jobs for the month of July. Meanwhile, Thursday’s data showed the number of Americans filing new claims for unemployment benefits rose last week.

* China fired several missiles near Taiwan in its biggest-ever military exercises in the Taiwan Strait after US House of Representatives Speaker Nancy Pelosi visited the self-governing island.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.03% to 1,000.32 tonnes on Thursday.

* Spot silver rose 0.2% to $20.21 an ounce, platinum gained 0.9% to $934.25 and palladium climbed 1.1% to 2,086.68 $.

DATA/EVENTS (GMT)


0600 Germany Industrial production MM, YY June

0600 United Kingdom House prices in Halifax MM, YY July

0645 France Reserve assets Total July

1230 US Non-Farm Payrolls July

1230 U.S. Unemployment Rate July