Gold touches maximum in a month due to the decline in the dollar and Treasury bond yields

Gold prices hit a one-month high on Thursday as the dollar and U.S. Treasury yields fell as investors weighed how strong inflation data could shape monetary policy.

Spot gold was up 0.4% at $ 1,799.30 an ounce as of 1100 GMT, having peaked since Sept. 15 at $ 1,799.95. Meanwhile, US gold futures were up 0.4% at $ 1,801.30.

The dollar and benchmark 10-year US Treasury yields were down. A weaker dollar makes gold cheaper for holders of other currencies.

Independent analyst Ross Norman described the rally in gold as “constructive” but said it had to overcome key technical resistance around $ 1,800 and $ 1,835 before another substantial move to the upside.

Investors took note of data showing Chinese producer prices posted a record annual increase last month and consumer prices in the United States rose sharply, also fueling fears that central banks could withdraw their financial support and raising interest rates sooner.

Central bankers in the United States said they could begin to reduce their support to the economy during the crisis in mid-November, but remain divided on the degree of threat posed by inflation and how quickly they may have to raise prices. interest rates, according to the minutes of the last monetary policy meeting.

But “now that we have a bit of visibility on what the Fed intends to do in terms of reduction and it is a relatively small amount, that has been positive for gold.Norman said.

Among other metals, spot silver was up 1.3% at $ 23.36 an ounce, platinum was up 1.5% at $ 1,035.47 and palladium was up 3.5% at $ 2,178.89.