The price of gold went up on Tuesday demand for safe-haven assets due to tensions in the Middle East and lower US Treasury bond yieldsalthough the metal remained below its recent record highs after the head of the Federal Reserve signaled fewer rate cuts to come.
He spot gold It rose 1.3% to $2,667.44, after reaching an all-time high of $2,685.42 last Thursday. The US gold futures They earned 1.1% to $2,688.55.
The yield on the 10-year US Treasury bond fell on Tuesday, making bullion, which does not yield interest, would be more attractive to investors.
Gold retreated from all-time highs on profit-taking and some capped gains due to Chinese stimulus measureswhich directed investor flows to the Chinese stock market, said Ricardo Evangelista, an analyst at ActivTrades.
However, the causes of the recent rally, including expectations of a drop in US interest rates and haven demand driven by geopolitical instability, remain intactEvangelista added.
Israel said heavy fighting with Hezbollah broke out in southern Lebanon on Tuesday.
On Monday, bullion recorded its worst day in more than four weeks after The Fed chair suggested the central bank will likely pursue rate cuts of a quarter percentage point and beyond. and that it was in “no hurry” after new data boosted confidence in ongoing economic growth and consumer spending.
Lower interest rates reduce the opportunity cost of holding bullion.
What the market looks at
Market attention now focuses on US ADP employment data, due out on Wednesday, and non-farm payrolls on Friday.which will provide more clarity on the health of the US labor market.
Goldman Sachs raised its gold price forecast to $2,900 an ounce from $2,700 by early 2025citing the gradual increase in ETF flows with interest rate cuts in the West and China, and increased purchases by central banks.
Among other precious metals, Spot silver rose 0.7% to $31.35 an ounce, platinum gained 0.7% to $983.15, while palladium lost 0.2% to $997.50.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
