Gold Futures Settle Higher On Safe-haven Buying

Gold prices climbed higher on Monday on safe-haven buying amid rising geopolitical crisis in the Middle East, where Israel and Palestinian militant group Hamas are engaged in a fierce battle.

Gold was also supported by hopes the Federal Reserve might pause interest rate hike after data showed wage growth in te U.S. moderated in the month of September although the economy saw a larger than expected job additions in the month.

The dollar pared early gains and is heading towards the flat line. The dollar index climbed to a high of 106.60 in the Asian session on safe-haven appeal, but has dropped to 106.08 now, up just marginally from the previous close.

Gold futures for December ended higher by $19.10 at $1,864.30 an ounce.

Silver futures for December ended up $0.201 at $21.924 an ounce, while Copper futures for December settled at $3.6460 per pound, gaining $0.0185.

“Gold prices are rising as a new geopolitical risk has investors scramble for safe-havens on a day the US bond market is closed. The Israel-Hamas war stunned markets and the risks are elevated that this could spread further across the Middle East,” says Edward Moya, Senior Market Analyst at OANDA.

“Gold now has a floor at the $1920 level and it seems it would take a perfect storm of hot inflation readings/expectations and for the big banks to deliver an upbeat outlook on the consumer, to reassert the bearish trend,” Moya adds.

The inflation data, due later in the week, could have a significant impact on the outlook for interest rates amid recent concerns the Federal Reserve will keep rates at an elevated level longer than previously anticipated.

Source: Read Full Article

Pin Up Aviator