Gold prices saw a modest uptick on Wednesday as softer U.S. Treasury yields provided some support, yet their ascent was tempered by signs of diminishing safe-haven demand. The waning appeal of bullion comes as global leaders strive to prevent the Israel-Hamas conflict from escalating further.
Gold’s Gain: Spot gold experienced a 0.2% increase, reaching $1,974.29 per ounce by 0104 GMT. This followed declines in the previous two sessions, with the precious metal trading below the five-month highs reached last week. U.S. gold futures remained stable at $1,985.40.
Global Concerns: Market participants are closely monitoring the ongoing conflict in the Middle East, where world leaders have been advocating for either a pause or ceasefire in the hostilities between Israel and Hamas in the Gaza Strip. The primary objective is to enable the delivery of humanitarian aid to the besieged Palestinian civilians.
Treasury Yields: The benchmark U.S. 10-year Treasury yields recorded a slight decrease as investors re-entered the market following a recent sell-off. Concerns over the potential economic impact of higher borrowing costs fueled this trend.
Economic Divergence: Reports from Tuesday indicated that U.S. business activity showed slight growth in October, while output in the euro zone unexpectedly declined, underscoring the diverging paths of central bankers in these two regions. These developments have also raised concerns about the eurozone potentially slipping into a recession.
Upcoming Data: Investors are eagerly anticipating the release of third-quarter U.S. GDP figures on Thursday and the U.S. PCE (Personal Consumption Expenditures) price index on Friday. These economic indicators will offer crucial insights into the state of the U.S. economy.
Anglo American Platinum: South Africa’s Anglo American Platinum revealed a 9% decrease in its refined platinum group metal (PGM) output during the third quarter. This decline was attributed to disrupted water supplies to its processing facilities and lower concentrate production.
Other Precious Metals: In addition to gold, other precious metals also exhibited movements. Spot silver rose by 0.3% to $23 per ounce, platinum added 0.2% to $886.08, and palladium advanced by 0.7% to reach $1,127.52.
As gold prices responded to various global developments, including the Israel-Hamas conflict and shifting economic dynamics, investors remained attentive to the precious metal’s performance, with a keen eye on upcoming economic data releases.
