Gold price breaks $1,700 as weak US data shifts sentiment – by Staff ( – October 4, 2022)

Gold continued its rally on Tuesday to an advance past $1,700 per ounce, as weak US data drove a significant sentiment shift in the precious metals markets. Spot gold rose 1.1% to $1,719.04 per ounce by 10:40 a.m. ET, its highest in three weeks. US gold futures gained 1.5% to trade at $1,727.60 per ounce in New York.

Meanwhile, benchmark US 10-year Treasury yields fell to a near two-week low, while the dollar extended its decline, making gold cheaper for other currency holders.

Bullion is now closing in on its 50-day moving average after surging Monday, when a US manufacturing gauge slumped more than expected. The price has traded mostly below the technical marker since April, a sign of poor sentiment that saw the safe-haven metal slump into a bear market.

Now the metal is at a crucial juncture as traders await US nonfarm payrolls this week for more clues on the future path of central bank monetary policy.

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