Gold hits its highest level since Dec. 12
Treasury yields pare gains after US data
US weekly jobless claims increase more than expected

Jan 16 Reuters Gold prices rose to a morethanonemonth high on Thursday after the latest U.S. economic data pressured the Treasury yields further, following a soft core inflation reading this week that increased bets for a more dovish Federal Reserve policy.

Spot gold gained 0.9 to 2,719.49 per ounce as of 1120 a.m. ET 1620 GMT, hitting its highest since Dec. 12. Prices hit an alltime high of 2,790.15 on Oct. 31, 2024.

U.S. gold futures rose 1.3 to 2,752.80.

Initial claims for state unemployment benefits rose to a seasonally adjusted 217,000 for the week ended Jan. 11, the Labor Department said on Thursday. A Reuters poll had forecast 210,000 claims.

The initial jobless claims were more than expected, so that signals some weakening in the labour market, said Alex Ebkarian, chief operating officer at Allegiance Gold.

We also saw the U.S. Treasury yields dropping, so we39;re seeing the attractiveness of gold reinvigorating.

U.S. Treasury yields pared gains and were trading near a oneweek low after retail sales, jobless claims and import prices data.

Gold prices extended gains on Wednesday after data showed core U.S. inflation increased 0.2 in December after rising 0.3 for four straight months, also giving hopes for easing monetary policy.

Markets now expect the Fed to deliver 37 basis points bps worth of rate cuts by yearend,…