Gold reaches its highest level in more than a week
Shafaq News / Gold prices hit their highest in more than a week Tuesday, a day after posting sharp gains on increased market uncertainty due to conflict in the Middle East, as dovish remarks from top U.S. Federal Reserve officials weighed on the dollar and bond yields.
Spot gold climbed to $1,865.19 per ounce, its highest since Sept. 29, and was last seen holding steady at $1,860.21 by 0506 GMT. U.S. gold futures climbed 0.5% to $1,874.10.
Gold rose about 1.6% on Monday, its biggest one-day jump in five months, as military clashes between Israel and Palestinian Islamist group Hamas boosted demand for safe-haven assets and oil.
The conflict is threatening more volatility for investors, adding to uncertainty ahead of the corporate earnings season and crucial U.S. inflation data this week.
“The events in the Middle East have provided a catalyst for gold to rebound from oversold conditions,” said Kyle Rodda, financial market analyst at Capital.com.
In the longer run, however, U.S. rates will be the bigger driver, he said, adding that yields are broadly very positive “and that’s kryptonite for gold.”
Gold is seen as a safe-haven investment during times of economic uncertainty, but as it yields no interest, it tends to lose its attraction when interest rates rise.
(Reuters)
