Gold rose as Fitch Ratings' move to strip the US of its top-tier sovereign credit grade buoyed haven demand.
Treasury futures climbed Wednesday, portending lower yields. While falling yields typically benefit bullion, which doesn't offer any interest, that was outweighed by the risk-off sentiment following Fitch's decision. The precious metal was also recovering from a 1.1% drop on Tuesday that was partially driven by gains in the dollar.
US figures released Tuesday, meanwhile, suggested some softening in demand for workers, potentially taking pressure off the Federal Reserve to keep hiking rates. The next key piece of data are US jobs numbers due Friday.
Spot gold rose 0.3% to $1,949.87 an ounce as of 8:23 a.m. in Singapore. The Bloomberg Dollar Spot Index dipped 0.1%, following a 0.5% gain on Tuesday. Silver, platinum and palladium all climbed.
Source : Bloomberg
