Gold prices turned to losses during these moments of today's trading, coinciding with the return of the US dollar index to rise.
Gold futures now record $1,977 per ounce, a decline of 0.5%.
Meanwhile, spot gold contracts fell by 0.32% to $1,966 per ounce.
On the other hand, the dollar index is now rising by 0.26% to 105.6 points.
Gold prices rebounded today, Tuesday, with US Treasury bond yields and the dollar declining, while investors await important economic data affecting the course of interest rates and monitor the ongoing tensions in the Middle East.
Gold is strengthened by war
The 10-year US Treasury yield fell, after briefly rising above 5% on Monday.
Ilya Spivak, Head of Global Macroeconomics at Tastylive, said: The spotlight is now on the relationship between geopolitical tensions and gold, given how strong the yellow metal is showing despite the rise in US bond yields.
Spivak added: Once the markets digest the geopolitical factors, bonds will become a factor influencing the movement of gold.
Gold is considered a safe haven in times of crisis and has risen by about nine percent in the past two weeks due to fears of war, hitting a five-month high on October 20.
The markets are awaiting the release of the industrial and services purchasing managers’ indices data scheduled for later today, in addition to the third-quarter gross domestic product data in the United States on Thursday, and the US personal consumption expenditures price index on Friday, to assess the extent of their impact on the course of the Federal Reserve’s monetary policy.
For the data to have any kind of meaningful impact, the outcome must be either much better or much worse than expected, Spivak said.
{{frl||The Federal Reserve Rate Monitoring Tool on Investing Saudi Arabia}} showed that investors' preference for the Federal Reserve not to change its monetary policy was 98.9% during the next meeting on November 1, compared to 72.5% one month ago.
Gold at settlement yesterday
Gold prices fell at the settlement of trading yesterday, Monday, with profit-taking operations to take advantage of the gains achieved, as investors follow developments regarding the conflict in the Middle East.
Upon settlement, gold futures contracts for December delivery fell by 0.35%, or the equivalent of $6.6, to reach $1,987.8 per ounce, reducing their losses after they touched $1,971 during trading.
Gold and dollar now
Gold futures rose to the level of $1990 per ounce, by 0.1%.
Meanwhile, spot gold contracts rose to $1,979 per ounce, or 0.3%.
On the other hand, the dollar index fell by 0.16% to 105.167 points.
other metals
Silver rose in spot transactions 0.7% to $23.15 per ounce, platinum fell 0.1% to $895.66, and palladium rose 1.1% to $1,129.79.
