Gold firms as US bond yields slip

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Gold prices climbed on Wednesday on softer US  Treasury yields, but lacked impetus to rise further 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 0.3 percent  to $1,975.61 per ounce, having declined in the previous two sessions and trading below five-month highs hit last week. US  gold futures were steady at $1,986.70.

“Gold had a great run, having rallied over 10 percent  in ten days towards that key resistance level at $2,000. But every move needs a pause, and we’ve reached that phase,” City Index’s senior analyst Matt Simpson said.

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“For now, intraday moves are less meaningful with US  GDP, Powell’s speech and a US  inflation report looming. But with the Middle East conflict looking like it might not escalate immediately, gold may struggle to break $2,000. Yet, gold bulls may be tempted to buy dips above $1,950.”

Investors are keeping a close watch on the Middle East war 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.

Markets are also eagerly awaiting the release of the US  GDP numbers for the third quarter on Thursday and the PCE price index on Friday ahead of the Federal Reserve’s policy decision next week.

The dollar index eased while 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.

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