Gold climbs as safe-haven bid intact on Middle East tensions
GOLD prices rose on Wednesday (Oct 18) after a deadly blast in Gaza fuelled fears of an escalating regional conflict, keeping the safe-haven asset in demand among nervous investors despite robust US economic data and a high rate scenario.
Spot gold climbed 0.4 per cent to US$1,929.89 per ounce by 0123 GMT, and US gold futures also jumped 0.4 per cent to US$1,942.70.
About 500 Palestinians were killed in a blast at a Gaza City hospital on Tuesday that Israeli and Palestinian officials blamed on each other and that ignited protests in the West Bank and around the Middle East.
Gold prices, which have surged about US$100 since the conflict began, have risen despite recent robust US economic data fuelling bets of higher-for-longer interest rates, which tend to lift the dollar and bond yields.
Production at US factories and retail sales increased more than expected in September, suggesting the economy ended the third quarter on a strong note.
Markets now await Federal Reserve chair Jerome Powell’s speech on Thursday for rate cues.
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Richmond Fed Bank chief Thomas Barkin on Tuesday said that higher long-term borrowing costs are putting downward pressure on demand.
Minneapolis Fed Bank president Neel Kashkari said it has taken much longer than expected for inflation to come down, and it is “still too high”.
China’s economy likely slowed in the third quarter, data is expected to show on Wednesday.
Spot silver added 0.5 per cent to US$22.93, platinum rose 0.2 per cent to US$898.77 and palladium slipped 0.8 per cent to US$1,134.93. REUTERS
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