Gold prices experienced a modest uptick today, with the ongoing Israel-Gaza conflict and the anticipation of pivotal US economic indicators, including the third-quarter GDP figures and the PCE price index, playing significant roles in influencing the market. The spot gold price increased by 0.7%, reaching $1,983.89 per ounce, while US gold futures registered a 0.5% rise, closing at $1,995.20.
However, the strengthening of indicators such as the dollar index and U.S. 10-year Treasury yields somewhat tempered the gains in gold prices. All eyes are now on the Federal Reserve, with its interest rate decisions closely tethered to these economic barometers. Should signs of an economic slowdown manifest, the Fed might consider delaying rate hikes, providing additional support for gold prices.
In contrast to gold’s performance, spot silver faced a slight decline of 0.3%, settling at $22.87 per ounce today. Nonetheless, other precious metals such as platinum and palladium recorded notable gains.
The recent upswing in gold prices occurs against the backdrop of increased business activity in the US throughout October, a stark contrast to the economic contraction experienced in the euro zone. Concurrently, China’s gold consumption has surged owing to its economic resurgence and elevated demand for the precious metal. According to the China Gold Association, the first three quarters of 2023 witnessed a substantial 7.32% rise in China’s gold consumption.
Bob Haberkorn of RJO Futures provided insights into these trends and their ramifications for the precious metals market. He emphasized the profound impact of geopolitical events and economic indicators on the fluctuations in gold prices.
