Gold prices ended the U.S. day session modestly higher and well down from the daily high Wednesday. A sharp downturn in the U.S. dollar index at mid-week has helped to boost the precious metals markets. December Comex gold was last up $4.20 an ounce at $1,351.00. September Comex silver was last up $0.365 at $20.215 an ounce.
Sentiment that an interest rate increase is moving farther and farther out on the time horizon continues to throttle back dollar strength. This, in turn, helped gold rise today.
The metal rose after a report that U.S. worker productivity fell for a third straight quarter in the spring of this year, shrugging off earlier losseson Friday's jobs report and pressuring the dollar index.
The unexpected drop in U.S. productivity may confirm the Federal Reserve's fears that the economy could slip into a period of slow growth, reducing the central bank's willingness to raise interest rates.
In a sign that there is still keen uncertainty and deflationary worries in the world marketplace, German 10-year government bond (bund) yields fell into record-low negative territory Wednesday, fetching an average yield of -0.9%, amid good demand. U.K. 10-year bonds this week also hit a record low yield of 0.53%. Chinese government 10-year bonds also hit a record low Wednesday, yielding 2.7%.
Reference: Reuters, Kitco
Thai
Eng