Gold prices hovered near a 2-1/2-month high on Thursday as escalating Middle East turmoil buoyed demand for the safe-haven asset, while investors awaited US Federal Reserve Chair Jerome Powell’s speech due later in the day.
Spot gold was steady at $1,947.45 per ounce after hitting its highest since Aug. 1 on Tuesday. US gold futures eased 0.4 percent to $1,959.70.
“Gold’s resilience in the face of rising yields and a rebounding US dollar, especially over the past several days, have really been a testament to the geopolitical backdrop,” said Ilya Spivak, head of global macro, Tastylive.
US President Joe Biden pledged to help Israel and the Palestinians during a visit on Wednesday, but a deadly hospital blast that he ascribed to an errant rocket fired by Gaza militants derailed talks to prevent the war from spreading.
Gold, often used as a safe store of value during times of political and financial uncertainty, has risen over $130 or nearly 8 percent since falling to a seven-month low on Oct. 6.
