Gold prices moved near the highest level in two and a half months in early trading Thursday, as escalating unrest in the Middle East boosted demand for a safe investment haven, while investors awaited a speech by Federal Reserve Chairman Jerome Powell, scheduled for later today.
Ilya Spivak, head of global macroeconomics at Tasty Life, said that gold’s steadfastness in the face of rising yields and the rise of the US dollar, especially during the past few days, is indeed evidence of the weight of the geopolitical background.
Gold, which is usually a safe investment haven in times of political and financial uncertainty, has risen more than $130, or nearly eight percent, since falling to a seven-month low on October 6.
Investors are awaiting Powell's speech today for more indications about the interest rate path in the coming period.
High interest rates increase the opportunity cost of gold, which does not generate returns and is priced in dollars.
Change in prices
By 0318 GMT, gold settled in spot transactions at $1,947.45 per ounce, after recording on Tuesday its highest level since August 1. US gold futures fell 0.4 percent to $1,959.70.
As for other precious metals, silver settled in spot transactions at $22.86 per ounce, platinum fell 0.5 percent to $881.24, and palladium fell 0.3 percent to $1,125.35 per ounce.
