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Gold firmed on Monday as rising tensions within the Middle East lifted demand for the protected-haven asset, whereas markets awaited a Federal Reserve coverage determination later this week for extra clues on the timing of this yr’s first US rate of interest lower.
Spot gold was up 0.4% at $2,027.00 an oz by 12:02 pm ET (1702 GMT), whereas US gold futures additionally rose 0.4% to $2,026.10.
Washington was contemplating its response to the primary lethal strike on its forces within the Middle East for the reason that Gaza warfare started after a drone assault in northeastern Jordan on the weekend killed three US servicemen and wounded at the least 34.
“That has ratcheted up the tensions in the Middle East even higher, and that’s what has the money moving into the gold and silver market on a safe-haven demand basis,” stated Jim Wyckoff, senior analyst at Kitco Metals.
Benchmark US 10-year bond yields slipped, rising the enchantment of non-yielding bullion.
A choice is due on Wednesday from the speed-setting Federal Open Market Committee (FOMC), which took a dovish flip within the December meeting.
“This FOMC meeting will show some guidance on when the first interest rate cut might come, and whether the Fed will lean dovish or hawkish on its monetary policy,” Wyckoff added.
Last week knowledge confirmed reasonable development in US costs in December, conserving annual inflation beneath 3% for a 3rd consecutive month and probably permitting the Fed to start reducing rates of interest this yr.
A Reuters ballot confirmed on Monday that uncertainty concerning the economic system and US rate of interest cuts might drive document gold costs in 2024. [PREC/POLL]
Spot silver was up 1.2% at $23.07 an oz, hitting its lowest degree since Jan.16, whereas platinum rose 1.6% to $927.05. Palladium gained 1.4% to $968.70.
Spot gold was up 0.4% at $2,027.00 an oz by 12:02 pm ET (1702 GMT), whereas US gold futures additionally rose 0.4% to $2,026.10.
Washington was contemplating its response to the primary lethal strike on its forces within the Middle East for the reason that Gaza warfare started after a drone assault in northeastern Jordan on the weekend killed three US servicemen and wounded at the least 34.
“That has ratcheted up the tensions in the Middle East even higher, and that’s what has the money moving into the gold and silver market on a safe-haven demand basis,” stated Jim Wyckoff, senior analyst at Kitco Metals.
Benchmark US 10-year bond yields slipped, rising the enchantment of non-yielding bullion.
A choice is due on Wednesday from the speed-setting Federal Open Market Committee (FOMC), which took a dovish flip within the December meeting.
“This FOMC meeting will show some guidance on when the first interest rate cut might come, and whether the Fed will lean dovish or hawkish on its monetary policy,” Wyckoff added.
Last week knowledge confirmed reasonable development in US costs in December, conserving annual inflation beneath 3% for a 3rd consecutive month and probably permitting the Fed to start reducing rates of interest this yr.
A Reuters ballot confirmed on Monday that uncertainty concerning the economic system and US rate of interest cuts might drive document gold costs in 2024. [PREC/POLL]
Spot silver was up 1.2% at $23.07 an oz, hitting its lowest degree since Jan.16, whereas platinum rose 1.6% to $927.05. Palladium gained 1.4% to $968.70.
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