Gold futures took an upturn on lower dollar

On Thursday, gold futures crept higher, bolstered by the cooled rally of the greenback. The precious yellow metal soared 1.26% to $1,798.85 per ounce.

At the same time, the spot bullion added 0.97% to $1,782.70 per ounce. In contrast, the US dollar index, which pits the greenback against six other major currencies, decreased 0.14% to 106.36.

Consequently, gold benefited from the weakness of the American Treasury yields. For instance, the benchmark 10-year bonds declined by 0.03% to 2.72%. This downturn reduced the opportunity cost of holding non-interest-bearing bullion.

Moreover, the metal also received a boost after solid US data reflected the country’s economic resilience. The July ISM Non-Manufacturing activity indicated that businesses held the fort. The recent PMI data increased to 56.70, surpassing the forecast and higher than June’s 55.90.

Correspondingly, the positive result pares back expectations of a recessionary scenario, benefitting the upsides of gold. The escalating geopolitical tensions between the US and China also supported safe-haven demand for the metal.

Accordingly, holdings of SPDR Gold Trust, the world’s largest bullion-backed exchange-traded fund, added 0.94% to 164.45.

Gold and other precious metals

Similar to gold, silver contracts inched up 1.84% to $20.25 per ounce, despite a risk-on market mood. The XAG/USD pair also surged 1.00% to $20.27, posting a strong bullish position.

Eventually, platinum futures added 1.33% to $900.05 per ounce, while palladium hiked 2.02% to $2,048.53.

However, the outlook for gold and other precious metals, dulled by the prospect of rising interest rates this year. As a result, analysts expected to see muted price action as the Federal Reserve tightens monetary policy.

Today’s economic docket will feature employment figures led by Initial Jobless Claims. Then, several Federal Reserve policymakers will also take the spotlight.

Furthermore, cautious investors awaited a key US non-farm payrolls report due this week. The indicator could offer more cues on Fed’s rate-hike stance.