Gold prices again exceed US $ 1,800 threshold due to strong investor demand

The gold prices They rose above the $1,800 level on Tuesday on strengthened investor demand, while lower dollar and Treasury yields offered additional support.

At 1038 GMT, spot gold was up 0.6% at $1,806.32 an ounce. US gold futures were up 0.6% at $1,807.40.

A weaker dollar is helping gold along with “a good response yesterday on the side of exchange traded funds (ETFs) that took us above the magic level of $1,800”, said independent analyst Ross Norman.

Holdings of SPDR Gold Trust, the world’s largest publicly traded gold-backed fund, rose to their highest level since mid-August on Monday.

“Gold is an engine not running on all cylinders right now”, Norman maintained, adding that retail demand is performing strongly, while “central banks are failing and institutional demand comes in intermittently”.

The dollar index fell from multi-month highs against its rivals, helping bullion recover from 1-1/2-month lows hit last week as it supported demand among buyers holding other currencies.

Benchmark 10-year US Treasury yields fell to a one-week low, underpinning non-yielding gold.

However, US Non-Farm Payrolls data due later this week is important as any signs of weak hiring and strong wage growth may strengthen market expectations that the Fed become more aggressive and, in turn, push gold lower, said Ilya Spivak, currency strategist at DailyFX.

Among other precious metals, silver rose 1.5% to $22.76 an ounce, platinum gained 1.9% to $1,037.00 and palladium added 1.3% to $2,381. 31.

With information from Reuters.