Gold prices mixed as yield rally cools, US data barrage in focus
Investing.com-- Gold prices traded in a mixed range on Tuesday, retaining most recent gains as traders watched for any more developments in the Israel-Hamas war, while focus also turned to a string of key U.S. economic readings due this week.
Near-term demand for gold remained underpinned, with spot prices rising as the Israel-Hamas conflict fed safe haven demand. But a drop in gold futures signaled that gold bulls remained wary of higher-for-longer interest rates.
Still, a drop in the dollar and yields from recent peaks also offered some relief to bullion prices.
Spot gold rose 0.1% to $1,975.71 an ounce, while gold futures expiring in December fell 0.1% to $1,986.55 an ounce by 00:14 ET (04:14 GMT). Both instruments remained within sight of a near three-month high.
The yellow metal saw stellar gains over the past two weeks as the onset of the Israel-Hamas war sent investors squarely into safe havens. Markets are now watching for any further escalation in the conflict, although recent diplomatic missions from several world powers appeared to have staved off any major escalation.
Treasury yields came off multi-month peaks this week, while the dollar also fell as markets hunkered down before a string of key economic cues this week.
U.S. purchasing managers’ index (PMI) data is due later on Tuesday, and is expected to offer more cues on business activity amid high interest rates and sticky inflation.
Federal Reserve Chair Jerome Powell is then set to speak on Wednesday, potentially offering up more cues on the path of monetary policy. The Fed chair recently reiterated that the bank plans to keep rates higher for longer, and also kept alive the possibility of one more rate hike this year.
Powell’s speech also comes just
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