Gold rises over 1% as retreat in dollar, yields boost allure

Shafaq News / Gold prices jumped more than 1% on Monday, with the rally spilling over into other precious metals as well, driven by a retreat in the dollar and U.S. Treasury yields, Reuters reported. 

Spot gold rose 1.3% to $1,791.26 per ounce by 1:42 p.m. EDT (1742 GMT), after hitting its highest since April 22 at $1,797.75. U.S. gold futures settled 1.4% higher at $1,791.80.

The dollar index slipped 0.3%, making gold cheaper, while benchmark U.S. 10-year Treasury yields also retreated, reducing the opportunity cost of holding non-interest bearing gold.

Gold also found support from data showing U.S. manufacturing activity grew at a slower pace in April.

Investors now await Friday's labour market numbers to gauge U.S. economic health.

But strong economic data can also push gold higher as it means inflation will rise, said Michael Matousek, head trader at U.S. Global Investors.

Elsewhere, auto catalyst metal palladium rose 1% to $2,962.94 per ounce, after hitting an all-time high of $3,007.73 on Friday.

While output cuts by the automobile sector necessitated by a shortage of semiconductor components could reduce palladium demand this year, the impact would be relatively small compared with production losses from Russia's Nornickel, with a sizeable market deficit still expected, Heraeus Precious Metals said in a note.

Silver gained 3.6% to $26.84 per ounce after hitting $26.98, its highest mark since March 1. Platinum rose 2.6% to $1,229.84.