Gold prices rose in early trading Thursday, with investors continuing to be concerned about the conflict in the Middle East, and the yellow metal, which is considered a safe haven, held out despite the rise in the dollar and US Treasury bond yields.

Investors are now awaiting the US GDP numbers for the third quarter later today and the personal consumption expenditures price index tomorrow, Friday, before the Federal Reserve’s interest rate decision next week.

“It is clear that the Fed sees higher interest rates as a way to curb inflation,” said Nikos Kavalis, Managing Director of Metals Focus.

Cavalis added that there is nothing preventing them from announcing another increase because the American economy is very strong.

Meanwhile, the European Central Bank is expected to keep interest rates unchanged at a record high level on Thursday, ending a 15-month streak of increases.

On the geopolitical front, Israel continued its attacks on Gaza while preparing for a ground invasion, and world powers at the United Nations failed to come up with plans to deliver vital humanitarian aid to the Strip.

Cavalis pointed out that the impact of geopolitical events was generally short-term on gold compared to the impact of macro events or financial disasters that may force global authorities to implement tight monetary and financial policies.

Gold is often resorted to as a safe haven asset in times of economic and political turmoil, although high interest rates reduce the attractiveness of non-yielding bullion.

Change in prices

By 0348 GMT, spot gold rose 0.4 percent to $1,986.79 per ounce. US gold futures also increased 0.1 percent to $1,997.10.

The dollar and 10-year Treasury yields rose after data indicated that new home sales rose to a 19-month high in September, confirming market expectations that interest rates will remain high for a longer period until 2024.

As for other precious metals, silver rose in spot transactions by 0.2 percent to $22.93 per ounce. While platinum fell 0.4 percent to $899.50, and palladium fell 0.1 percent to $1,124.80 per ounce.