Gold prices continued their upward trajectory on Tuesday, with spot gold reaching $1,862.8 per ounce and U.S. gold futures hitting $1,876.9. The ongoing conflict in the Middle East between Israel and Hamas has amplified the demand for safe-haven assets like gold and oil. This surge follows Monday’s remarkable one-day increase in gold prices, the most substantial such gain in the past five months. Market apprehensions surrounding the forthcoming corporate earnings season and the release of U.S. inflation data have been key factors behind this rise.
Kyle Rodda, a financial market analyst, suggests that while recent events have contributed to gold’s resurgence from oversold conditions, the trajectory of U.S. interest rates will play a more significant role in the long term. This viewpoint is substantiated by statements from Federal Reserve Vice Chair Philip Jefferson and Dallas Fed President Lorie Logan, which led to a retreat in benchmark 10-year Treasury yields from their 2007 highs. This shift implies a potential change in the Federal Reserve’s short-term policy rate.
As investors await the release of minutes from the U.S. central bank’s September meeting scheduled for Wednesday, the prices of spot silver, platinum, and palladium exhibited fluctuations in response to market dynamics.
In corporate news, notable developments included John Humphrey’s appointment as chairman of Lynas Rare Earths, the suspension of Rio Tinto’s heritage-related survey, and the Australian Competition and Consumer Commission’s (ACCC) approval of a Brookfield-led takeover of Origin Energy. Additionally, changes in broker ratings spurred share price increases for Core Lithium and Pilbara.
