During Thursday’s early American session, the price of gold (XAU/USD) staged a recovery, climbing to $2,380 after experiencing losses on Wednesday. The precious metal maintained its gains amidst concerns that escalating tensions in the Middle East could exacerbate and extend beyond Gaza should Israel respond forcefully to Iran.
Reports from The Times indicated that Israeli Prime Minister Benjamin Netanyahu emphasized his country’s commitment to defending itself, following discussions with foreign ministers from the United Kingdom and Germany.
Interestingly, the rebound in gold prices has remained resilient despite the uptick in US Treasury yields, which are influenced by the Federal Reserve’s interest rate outlook. The 10-year US bond yield rose to 4.64%, aiming to surpass the previous five-month high of 4.70%. Typically, lower yields on interest-bearing assets diminish the opportunity cost of holding non-yielding assets like gold.
