Gold held near its highest in about 15 months in Asian trading as the dollar reached the lowest level in almost a year. Palladium touched the highest since November.
Bullion for immediate delivery was little changed at $1,292.65 at 4:24 p.m. in Melbourne, according to Bloomberg generic pricing. The metal closed Friday at the highest since Jan 23, 2015. Gold futures for June delivery advanced Monday as much as 0.6 percent to $1,298.50 an ounce on the Comex in New York.
Gold has risen as the dollar has weakened, closing in on the psychological $1,300 an ounce level, Australia & New Zealand Banking Group Ltd. analysts including Sydney-based senior economist Jo Masters wrote Monday in a note to clients. “The continued strength in the yen against the USD and the lackluster earnings season has seen investor demand remain strong in the gold market.”
The Bloomberg Dollar Spot Index, which tracks the U.S. currency against 10 major peers, extended declines Monday, falling to the lowest since May. The yen traded at the strongest level in about 18 months as concern over the global economy pares the outlook for U.S. interest-rate increases.
Gold suppliers posted gains on the metal’s advance. Newcrest Mining Ltd., Australia’s biggest producer, rose in Sydney to the highest in more than three years, while Evolution Mining Ltd., the second-largest producer, jumped 9.7 percent.
Nonfarm payroll data for April, scheduled to be released Friday, may offer evidence of an improving U.S. economy and bolster the dollar, Dominic Schnider, head of commodities and Asia-Pacific foreign exchange at UBS Group AG’s wealth-management unit in Hong Kong, said Monday in an interview on Bloomberg’s Television’s “Trending Business.”
“The market could start to see that the economy in the U.S. might start to accelerate in the coming quarter,” Schnider said. “That should give us confidence that some of the dollar weakness will actually reverse. That’s the story investors should play for the second half of this year.”
- Gold ETP holdings rose 1.68 metric tons to 1,759.1 tons as of Friday, data compiled by Bloomberg show.
- Platinum declined as much as 0.5 percent, the most in more than a week
- Palladium rose as much as 1.5 percent, to the highest since November.