Gold prices varied during these moments of trading today, Wednesday, due to the decline in US Treasury bond yields, as the yellow metal lacked the incentive to continue rising with signs of weakness emerging in demand for gold as a safe haven as world leaders sought to prevent the expansion of the war in the Middle East.
Gold is struggling to break the $2,000 level
Matt Simpson, chief analyst at City Index, said: Gold has had a great performance over the past period, rising more than 10% in ten days towards the key resistance level at $2,000. Pointing out that every upward step requires a temporary pause, and we have reached this stage.
Simpson added: At the present time, daily movements are less important with the approaching disclosure of US GDP data, the US Federal Reserve Chairman’s speech, and the US inflation report. But with the conflict in the Middle East not expanding quickly, gold may struggle to break $2,000. However, gold bulls may be tempted to buy dips above $1,950.
Investors are closely watching the war in the Middle East, as world leaders seek either to stop the fighting between Israel and Hamas in the Gaza Strip, or a ceasefire so that humanitarian aid can be delivered to besieged Palestinian civilians, as the Strip is witnessing an unprecedented humanitarian catastrophe with the number of deaths and injuries escalating. .
Markets are also eagerly awaiting the release of third-quarter US GDP data on Thursday, and the PCE price index on Friday, ahead of the Fed's policy decision next week.
The dollar index fell while benchmark 10-year US Treasury yields fell amid concerns about the economic impact of higher borrowing costs.
According to Standard & Poor's Global's preliminary reading, the Composite Purchasing Managers' Index recorded 51 points in October, up from 50.2 points in September, supported by an increase in the Manufacturing PMI to 50 points, which is the highest level in 6 months.
The Federal Reserve rate tracking tool on Investing Saudi Arabia showed a decline in investors’ likelihood that the Federal Reserve will not change its monetary policy to 96.6% during the next meeting on November 1, compared to 98.9% one day before.
Gold at settlement yesterday
Gold prices turned lower at the settlement of trading session, yesterday, Tuesday, under pressure from the rise in the dollar index and US bond yields, after economic data that reinforced fears of continued tightening of monetary policy by the Federal Reserve for a long period.
Upon settlement, gold futures for December delivery fell by approximately 0.1%, or $1.7, to reach $1,986.1 per ounce, trimming their losses after touching $1,964.6 during trading.
Gold and dollar now
Gold futures settled at $1,986 per ounce without a noticeable rise or fall.
Meanwhile, spot gold contracts rose by 0.22% to $1,975 per ounce.
On the other hand, the dollar index fell by 0.07% to 106 points.
other metals
The price of silver settled in spot trading at $22.94 per ounce, platinum increased 0.3% to $886.54, and palladium advanced 0.9% to $1,129.18.
Anglo American Platinum South Africa said on Tuesday that its production of refined platinum group metals (PGM) fell by 9% in the third quarter, due to interruptions in water supplies to its processing facilities.
