On Wednesday, gold prices increased due to lower U.S. Treasury yields; however, the safe-haven demand for bullion began to flag as world leaders attempted to stop the Israel-Hamas conflict from getting worse.
By 02:27 GMT, spot gold had increased by 0.3% to $1,975.61 an ounce, after falling the previous two sessions and trading below the five-month highs reached last week. At $1,986.70, US gold futures were stable.
“Gold had a fantastic run, rising more than 10% in ten days to approach the crucial $2,000 resistance level. However, every action requires a pause, and that time has come, according to senior analyst Matt Simpson of City Index.
“With the U.S. GDP, Powell’s speech, and an impending U.S. inflation report, intraday movements are currently less significant. However, given that it appears that the Middle East situation may not worsen right away, gold might find it difficult to surpass $2,000. However, bulls in gold might be inclined to purchase declines above $1,950.
As international leaders pleaded for a pause or ceasefire in the fighting between Israel and Hamas in the Gaza Strip to allow humanitarian aid to reach beleaguered Palestinian civilians, investors were keeping a careful eye on the Middle East conflict.
Ahead of the Federal Reserve’s policy meeting next week, markets are also keenly expecting the release of the third-quarter U.S. GDP figures on Thursday and the PCE price index on Friday.
As investors bought into a recent sell-off over worries about the economic impact of increasing borrowing costs, the dollar index sank and benchmark U.S. 10-year Treasury yields slightly decreased.
Spot silver remained unchanged at $22.94 per ounce, while palladium increased by 0.9% to $1,129.18 and platinum gained by 0.3% to $886.54.
Anglo American Platinum, based in South Africa, reported on Tuesday that lower concentrate production and interrupted water supplies to its processing facilities caused a 9% decrease in the company’s refined platinum group metal (PGM) output in the third quarter.