Gold Price Today: Yellow metal up 1.3% WoW. Worsening Middle East crisis to boost appeal

economictimes.indiatimes.com:

The ten-year US yields, which made a fresh 16-year high of 5.02%, shrugged off strong US data released in the week on expectations that the US Federal Reserve will keep the interest rates unchanged at its FOMC monetary policy meeting due next week. A decent auction of seven-year US bonds also helped the yields to grind lower.

The ten-year US yields at 4.84% were down nearly 1.75% on the week, whereas the two-year yields softened by 7 bps to close at 5.01%. The US Dollar Index closed the week with a weekly gain of around 0.35% at 106.57.

The US Core PCE deflator (September) rose 0.30% and 3.70% m-o-m and y-o-y respectively, which matched the forecasts, though the PCE deflator m-o-m was up 0.40% compared to the forecast of 0.30% as the y-o-y reading at 3.40% was in line with the forecast.

University of Michigan sentiment (October Final) was noted at 63.80 compared to the initial estimate and forecast of 63. University of Michigan one-year inflation expectations (October Final) came in at 4.2% as against the forecast of 3.8%, while 5-10 year inflation expectations at 3% matched the forecast.

Earlier in the week, it was reported that the US GDP in Q3 (advance estimate) grew at 4.90% on an annualised basis, which topped the forecast of 4.50%.

Similarly, durable goods orders and pending home sales were better than estimates, thus the US data continue to throw upside surprises.

The European Central Bank concluded its monetary policy on Thursday. As expected, the ECB left the benchmark unchanged.

The ECB President Ms Lagarde said that the Euro-zone's economy is likely to remain weak for the remaining part of the year as risk is skewed towards the downside. The single currency is vulnerable to rate differential and weak