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PRECIOUS-Gold eyes best week in 6 months on lower dollar, Treasury yields

Published 2021-05-07, 06:21 a/m
© Reuters.
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* U.S. April jobs data due at 8:30 am EST

* Silver eyes best week in three months

* Spot gold may test resistance at $1,830/oz - Reuters analyst (Updates prices)

By Sethuraman N R

May 7 (Reuters) - Gold prices on Friday extended gains after breaching the key $1,800 level in the previous session, boosted by a weaker dollar and lower Treasury yields, while investors awaited U.S. non-farm payrolls data due later in the day.

Spot gold XAU= was up 0.2% at $1,817.99 per ounce by 1201 GMT, after hitting its highest since Feb. 16 earlier in the session. Bullion has gained 2.8% so far this week, its best week since early Nov. 2020.

U.S. gold futures GCv1 rose 0.3% to $1,820.80.

"The technical picture has brightened after gold finally broke above $1,800. This could lead to follow-up buying by speculative, technical investors and could also lead to more conviction amongst ETF investors," Commerzbank (DE:CBKG) analyst Carsten Fritsch said.

The dollar index .DXY slipped to a one-week low, while benchmark U.S. 10-year Treasury yields US10YT=RR hovered close to a two-week low. USD/ US/

Market participants await U.S. monthly jobs report due at 08:30 a.m. EST. Economists expect 978,000 new U.S. jobs in April, according to a Reuters poll. on Thursday showed weekly U.S. jobless claims dropped to a 13-month low. Fed has made pretty clear that it will not react even after strong U.S. data and the monetary policy stands for the time being. So, even a strong U.S. payroll would not have a meaningful negative impact on gold. But, a weaker one would be bullish for gold," Fritsch said.

Spot gold may test resistance at $1,830 per ounce, a break above which could lead to a gain to $1,847, according to Reuters technical analyst Wang Tao. TECH/C .

Elsewhere, palladium XPD= fell 0.6% to $2,928.71 per ounce, after hitting an all-time high of $3,017.18 earlier this week.

Silver XAG= eased 0.2% to $27.25 per ounce, though the metal has climbed more than 5% this week. Platinum XPT= slipped 0.2% to $1,249.82.

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