Gold range-bound as traders focus on Middle East conflict, US rate scenario
Salamat Sanwan
GOLD prices flitted in a range-bound trade on Friday (Oct 27) as traders weighed the repercussions of the Middle East conflict against expectations that US interest rates would stay higher for longer after the economy’s upbeat performance last quarter.
Spot gold was steady at US$1,984.69 per ounce by 0131 GMT. US gold futures were down 0.2 per cent at US$1,994.30.
Israeli forces executed their biggest ground attack in Gaza in their 20-day-old war with Hamas overnight as anger grew in the Arab world over Israel’s unrelenting airstrikes on the besieged Palestinian territory.
The US economy surged at the fastest growth pace in nearly two years in the third quarter, again defying dire warnings of a recession.
US Treasury Secretary Janet Yellen said US third-quarter economic growth of nearly 5 per cent was a good sign that the economy was headed for a soft landing, but could help keep longer-dated bond yields elevated.
The US dollar was set for a weekly gain on Friday, while US Treasury yields edged 0.2 per cent higher after easing in the last session following the release of weaker-than-expected US inflation and disposable income data.
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Investor focus is also on the US personal consumption expenditure (PCE) price index for cues on what to expect from the Fed’s policy meeting next week.
The European Central Bank left interest rates unchanged, as expected on Thursday, snapping a 15-month streak of rate hikes, echoing the recent actions of the Federal Reserve and the Bank of England.
China’s gold imports via Hong Kong fell 11 per cent in September from the previous month, the Hong Kong Census and Statistics Department data showed on Thursday.
Spot silver eased 0.1 per cent to US$22.80, platinum rose 0.3 per cent to US$902.72 and palladium fell 0.1 per cent to US$1,132.11. REUTERS
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