Gold gains

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Gold prices rebounded on Tuesday as benchmark US Treasury yields pulled back, while investors awaited economic data for guidance on interest rates and monitored growing tensions in the Middle East.

Spot gold was up 0.2 percent at $1,976.99 per ounce, while US gold futures was steady at $1,988.10.

Benchmark 10-year US Treasury yield declined, after briefly rising above 5 percent on Monday and further threatening an economic slowdown on higher borrowing costs.

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“The importance of geopolitics and gold is really highlighted very clearly by how strong gold has been despite stronger bond yields,” said Ilya Spivak, head of global macro at Tastylive.

“Once markets digest geopolitics, yields would become more of a meaningful factor,” he added.

Gold is seen as a safe investment during times of crisis and has surged about 9 percent in the past two weeks on war worries, hitting five-month highs on Oct. 20.

Investors are keeping watch on the Middle East war as Israel’s military issued a statement suggesting that Israel had no intention of curbing its strikes on Gaza Strip and hinting it was well prepared for a ground assault. – Reuters

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