Gold rises to two-week high as dollar and Treasury yields retreat

Gold prices extended their gains on Thursday, November 5, reaching their highest level in more than two weeks as a weaker US dollar, declining Treasury yields and falling oil prices improved the outlook for precious metals.

Silver also advanced, benefiting from lower borrowing costs and renewed buying interest following Wednesday's sharp rally.

Price overview

Spot gold rose 1.7% to $4,130.27 an ounce during Thursday's morning trading, while US gold futures for December delivery gained 1.6% to $4,139.60 an ounce.

Silver futures traded around $52.87 an ounce, up approximately 1.1%.

Dollar and bond yields retreat

The dollar weakened following Democratic victories in the US congressional elections, while Treasury yields declined as investors reassessed the outlook for government spending and monetary policy.

Lower yields reduce the opportunity cost of holding non-yielding assets, providing support for gold and silver.

Oil slump eases inflation concerns

Brent crude fell nearly 9% on Wednesday as investors anticipated a possible easing of tensions between Washington and Tehran.

Lower energy prices have reduced concerns about inflation and the need for further aggressive interest rate increases.

Gold's recovery follows Wednesday's gain of nearly 3.4%, its strongest daily performance since August 19.

US employment data in focus

Investors are awaiting Friday's US nonfarm payrolls report, which could influence expectations for the Federal Reserve's December policy decision.

Stronger employment figures could revive rate hike expectations and limit further gains in precious metals.

Market outlook

Gold faces resistance around $4,150, followed by $4,200, while initial support stands near $4,100.

Silver could test $53.50 if buying momentum continues, with support around $52.00.