Gold prices surpass $2000 amid safety rush
2023-10-30
Summary:
Gold, up three consecutive weeks, attracts investors amid a risk-off mood, holding above $2000 and defying elevated Treasury yields.
Gold has risen for three straight weeks as a risk-off mood lure investors into bullion. It firmed above the $2000 level on Monday despite high Treasury yields.
The lingering prospects of US interest rates staying higher for longer have kept prices below the key psychological level last breached in May this year.
High inflation will dog the world economy next year, with three-quarters of over 200 economists polled by Reuters saying the main risk is that it turns out higher than they forecast.
Israel has pledged to continue its “large scale, significant strikes” to destroy Hamas. Palestinian leader Mahmoud Abbas has called on the international community to stop Israel’s attacks on Gaza.
The US on Thursday carried out airstrikes targeting two facilities linked to Iranian-backed militias in eastern Syria following a series of drone and rocket attacks against US forces in the region.
The Fed is expected to pause again at its meeting this week even as persistent underlying price pressures amid strong consumer spending kept some chance of a rate hike later this year in play.
Gold’s meaningful rally to surpass the strong resistance opens the way to achieve more gains in the upcoming period, but its upward trajectory will likely be slowed ahead of the Fed’s next decision.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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