Gold Holds Steady

Gold Steady as Dollar Strengthens, Yields Rise; US Jobs Data in Focus

Gold prices were little changed on Friday as investors awaited key US employment data for clues about the Federal Reserve’s interest rate outlook. A stronger US dollar and elevated Treasury yields continued to weigh on the appeal of the non-yielding precious metal.

Spot gold rose 0.1% to $4,182.45 an ounce as of 11:53 WIB, while US gold futures gained 0.2% to $4,212.05.

The yellow metal was on track for its second consecutive weekly decline, down more than 2% so far this week.

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The US Dollar Index edged down 0.2% but remained close to a 17-month high reached in the previous session. The index was heading for a weekly gain of around 1%, making gold more expensive for holders of other currencies.

Meanwhile, the yield on the benchmark 10-year US Treasury note briefly climbed to 5.344% on Thursday, its highest level since 2002, before easing to around 5.25% on Friday.

US Jobs Report in Focus

Markets are closely watching the September nonfarm payrolls report, scheduled for release on Friday. Economists expect US employers to have added nearly 90,000 jobs, down from 162,000 in August, while the unemployment rate is forecast to remain at 4.1%.

The Federal Reserve raised its benchmark interest rate by 25 basis points last month to 3.75%-4.00%, marking its first rate increase in three years. The central bank also signaled that further rate hikes could follow.

However, softer inflation data has reduced expectations for another rate increase this month. Markets were pricing in around a 28% chance of an October rate hike, sharply lower than the 69% probability seen a week earlier.

Gold received some support earlier in the week after weaker-than-expected US inflation data reduced expectations for higher interest rates. However, traders remain cautious as persistently higher oil prices and rising Treasury yields could keep inflationary pressures elevated.

Higher oil prices, driven by rising tensions in the Middle East, have also contributed to the recent increase in global bond yields. This has reinforced the competing forces affecting gold, with safe-haven demand providing support while higher yields increase the opportunity cost of holding the non-yielding asset.

Precious Metals and Copper Gain

Other precious and industrial metals also moved higher during Asian trading hours.

Silver prices rose 0.4% to $61.247 an ounce, while platinum gained 0.8% to $1,740.60 an ounce.

Benchmark London Metal Exchange copper futures edged 0.6% higher to $14,353.33 per metric ton, while US copper futures advanced 0.7% to $5.59 per pound.

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Grande Portage Offtake Deal

Grande Portage Secures Gold Offtake Deal

Grande Portage Resources Ltd. (TSXV:GPG) (OTCQX:GPTRF) (FSE:GPB) announced that it has signed a definitive gold purchase agreement with Ocean Partners (UK) Ltd., a metals trading and mining finance group.

Under the agreement, Ocean Partners will purchase up to 100% of production from Grande Portage’s New Amalga property in Alaska during the first seven years of commercial operations, subject to minimum tonnage requirements and other applicable conditions, according to a company press release.

The agreement provides greater certainty around metal payments and payables across various product grades and includes flexible termination rights. Grande Portage said the agreement can also be incorporated into its economic studies, ranging from a preliminary economic assessment (PEA) through to a feasibility study.

A previously announced $25 million revolving credit facility with Ocean Partners remains subject to customary conditions, including the completion of due diligence and legal documentation.

Ian Klassen, CEO of Grande Portage, said the agreement represents an important milestone in the company’s progress toward production. The company’s direct-ore-shipping platform is designed to eliminate the need for on-site processing facilities and mine tailings storage facilities.

The New Amalga Gold Project is currently completing baseline environmental studies. Grande Portage plans to submit a Plan of Operations to the U.S. Forest Service in the first quarter of 2027, initiating the federal environmental review process.

Grande Portage owns 100% of the New Amalga property, located approximately 25 kilometers north of Juneau, Alaska. The project’s mineral resource estimate, effective July 17, 2024, includes 1,438,500 ounces of indicated gold resources at an average grade of 9.47 grams per tonne, along with 515,700 ounces of inferred gold resources at an average grade of 8.85 grams per tonne.

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Gold Holds Steady

Gold Prices Hold Steady After 1.6% Gain as Lower Oil Prices Offset Bond Yield Pressure

Gold prices held steady on Wednesday after climbing 1.6% in the previous session, as falling oil prices eased some concerns over energy-driven inflation, while elevated U.S. Treasury yields continued to weigh on bullion.

At 08:36 WIB, XAU/USD was little changed at $4,180.54 per ounce, while Gold Futures rose 0.8% to $4,212.01. XAG/USD slipped 0.2% to $61.37, while XPT/USD gained 0.1% to $1,715.51. The U.S. Dollar Index edged 0.03% higher to 101.41.

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Lower Oil Prices Ease Inflation Pressure Amid Strait of Hormuz Standoff

Oil prices extended their decline as signs emerged that Middle Eastern supply was beginning to recover toward pre-war levels.

Saudi Arabia increased flows through a key pipeline after repairs were completed, helping offset concerns over the ongoing disruption in the Strait of Hormuz, which had pushed fuel prices higher earlier in the week.

Despite the recent decline, Brent crude remains around 70% higher this year as the conflict approaches its eighth month.

The drop in oil prices has eased some pressure on the inflation outlook, although uncertainty surrounding energy supplies remains an important factor for markets as investors assess the Federal Reserve's next policy steps.

Markets will now focus on the Personal Consumption Expenditures (PCE) inflation data due Wednesday, the Federal Reserve's preferred inflation gauge, followed by Friday's nonfarm payrolls report. The data could provide further clues about the future path of U.S. interest rates.

U.S. Treasury Yields Remain a Headwind for Gold

Pressure on gold from the bond market remained elevated. The yield on the longest-dated U.S. Treasury securities rose for a sixth consecutive session on Tuesday, reaching its highest level since 2002 as investors assessed whether persistently high energy costs could force the Federal Reserve to raise interest rates further.

Higher bond yields generally weigh on gold because the precious metal does not generate interest income. Federal Reserve officials have continued to signal that monetary policy may need to remain restrictive even after the central bank raised interest rates in September for the first time since 2023.

New York Fed President John Williams said Tuesday that another interest-rate hike later this year could be appropriate. His comments prompted traders to reduce the implied probability of a rate hike at the Fed's late-October meeting, which will take place shortly before the U.S. midterm elections, from around 70% to approximately 50%.

Williams cited the Middle East conflict and the rapid expansion of artificial intelligence infrastructure as key sources of inflationary pressure. Three other Federal Reserve officials also discussed the possibility of additional rate hikes in separate appearances on Tuesday.

Gold is on track to end September nearly 6% lower, with elevated energy costs contributing to broader pressure on the precious metal.

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