Gold firms as US bond yields slip with focus on Middle East
Salamat Sanwan
GOLD prices climbed on Wednesday (Oct 25) on softer US Treasury yields, but lacked the impetus to move higher as bullion’s safe-haven demand showed signs of fatigue after global leaders sought to prevent the Israel-Hamas war from spreading.
Spot gold gained 0.2 per cent to US$1,974.29 per ounce by 0104 GMT, having declined in the previous two sessions and trading below five-month highs hit last week. US gold futures were steady at US$1,985.40.
Investors are keeping a close watch on the war in the Middle East as world leaders pushed for either a pause or ceasefire in fighting between Israel and Hamas in the Gaza Strip so that humanitarian aid could be delivered to besieged Palestinian civilians.
The benchmark US 10-year Treasury yields inched lower as investors bought into a recent sell-off amid concerns about the economic impact of higher borrowing costs.
US business activity ticked higher in October while output in the eurozone took a surprise turn for the worse, surveys showed on Tuesday, underscoring the diverging path for central bankers in the two regions and fanning fears the bloc may slip into recession.
Investors are now eagerly awaiting the release of the US GDP numbers for the third quarter on Thursday and the US PCE price index on Friday.
South Africa’s Anglo American Platinum on Tuesday said its refined platinum group metal output declined 9 per cent during the third quarter, due to disrupted water supplies to its processing facilities and lower concentrate production.
Spot silver rose 0.3 per cent to US$23 an ounce, platinum added 0.2 per cent to US$886.08 and palladium advanced 0.7 per cent to US$1,127.52. REUTERS
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