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Gold futures climbed back above the $1,800 mark on Friday to post their highest settlement in nearly four weeks. The precious metal’s rise above the key $1,800 level appears to be driven by broad capital flows leaving risk markets and moving into defensive havens such as gold.
Gold (XAU/USD) advances for the third successive day, aiming towards ending the week on a higher note, trading around $1,805 during the New York session. The market sentiment is downbeat, as shown by US equity indices posting losses between 0.22% and 1.18%. Meanwhile, US bond yields extend their fall, with the 10-year benchmark note falling three basis points, down to 1.392%, a tailwind for the non-yielding metal.
The US Dollar Index ended the week above the 96.50 threshold. The US 10-year Treasury yield finished down, at 1.412%. DXY Technical outlook: Breaks above the ascending triangle, USD bulls target 98.00. The US Dollar Index, also known as DXY, which measures the greenback’s performance against a basket of six rivals, rallies 0.72%, sitting at 96.68 during the day as the New York session diminishes.
The market sentiment was relaxed as the Wall Street session closed, with major US equities finishing in the red territory, following European stock indices footsteps.
In the US bond market, Treasury yields in the short-maturity of the curve rise with 2s, and 5s, up between 1 and 2.5 basis points, ended at 0.6457% and 1.1815%, each. In the mid to long maturity of the yield curve, yields fell between 1-4 basis points, with 10s, the 20s, and 30s, finishing at 1.412%, 1,8623%, and 1.82%, respectively.
Economic Data
Baker Hughes on Friday reported that the number of active US rigs drilling for oil rose by four to 475 this week.
The rig count was also up by four in the previous week, Baker Hughes data show. The total active US rig count, which includes those drilling for natural gas, climbed by three to 579, according to Baker Hughes.
Other Developments
European countries prepared to impose further restrictions on Friday in an effort to stem surging cases of the Omicron variant that are threatening to stall a global economic recovery.
Pfizer said the COVID-19 pandemic could extend through next year and announced plans to develop a three-dose vaccine regimen for children ages 2 to 16. The yield on the 30-year Treasury bond was down 4.6 basis points to 1.815%.
The two- and 10-year Treasury notes yield spread was at 76.0 basis points, from 79.4 Thursday. The two-year US Treasury yield, which typically moves in step with interest rate expectations, was up 2.3 basis points at 0.644%.
But despite the Omicron threats to demand, Goldman Sachs said on Friday the new variant has had limited impact on mobility or oil demand, adding that it expected oil consumption to hit record highs in 2022 and 2023. read more Oil prices have retreated from multi-year highs earlier in the fourth quarter on improved supplies.
Also Read:
US Bond Yields Fall, Curve Slightly Flattens
Oil Prices Impacted By Omicron, More US Drilling Rigs Reported
US Dollar Index Breaks Above Towards 98.00
EUR/USD Falls Post-Fed, ECB Policy Meetings
Hot inflation, Omicron, Withdrawn Stimulus Shaping Economic Outlook For 2022
USD/CAD Surges as Hawkish Fed’s Waller Spurs USD Gains
Gold Prices Moved By Keener Risk Aversion On Friday
USD/CHF Pares Thursday’s Losses, Reclaims 0.9200 Figure
Waller: Accelerating Taper Meant To Make March Fed Meeting Live
NY Fed’s Williams: Raising Rates Be Positive Event For US Economy
European Shares Stumble On Info Data Drop For Sixth Month
