Israel-Palestine Conflict Reflects On Gold Prices, Hitting A One Week High (Image: Unsplash.com)
The gold prices have surged on account of the after-effect of the conflict in Middle East. The current geopolitical tensions, centered around Israeli forces and Palestine Islamist group Hamas, the conflict can be seen reflected upon the price rise in gold to above a one week high. The gold prices now stand at a one week high and on Monday, the gains were above 1 percent at above $1,800 reflecting the geopolitical tensions.
Apart from the Israel-Palestine conflict’s impact, the yellow metal draws its gaining strength from the slide in the US treasury bond yields, which is led by the unchanged rate hikes of the Federal Reserves and a subdued US dollar. Based on these, the yellow metal remained high for a third day on Tuesday after staying low for seven months. It has recovered above $50 since.
The intraday trading stayed clean and did not pick up as the bullish traders are holding on to the general positivity in the trade market, preferring to wait and watch for the release of the US FOMC meeting’s minutes and the figures for consumer index which is expected to be out on Wednesday and Thursday respectively. Thus, bets around XAU/USD (exchange rate of US dollars to price of gold) have not picked up a bullish pace but is on the wait, reported FXStreet, independent portal for Foreign Exchange, Forex and Crypto market news.
The US Fed officials have said that the rise in the US treasury bond yield could be of help in fighting against inflation. There are expectations of a Fed hike by November, this year.
In between the clashes, the gold prices edged high since May, pertaining to its demanding nature as a safe haven while the oil prices went down slightly though Israel’s crude oil production is not very high. The oil prices reflected the worried sentiments on Tuesday, about the escalation of conflict beyond Gaza and hurting the middle east supply though it had gained a four percent in the previous session.
Monday saw the gold prices on MCX (Multi Commodity Exchange) for December 2023 expiry contract open at a raised Rs. 57,000 per 10gms and go on to Rs. 57,400 within just few minutes, reported the mint.
