- Gold price holds positive ground near $1,950 amid the escalating tension and cautious mood.
- The Fed officials reiterated their preference to maintain the interest rates.
- The escalating geopolitical tensions in the Middle East could lift safe-haven flows.
Gold price (XAU/USD) hovers around $1,950 after retreating from the two-month highs of 1,962 during the early Asian trading hours on Thursday. The rally in the precious metal is bolstered by the rising geopolitical tension in the Middle East, which boosts the safe-haven flows.
Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, climbs to 106.55. US Treasury yields edge higher, with the 10-year Treasury yield surging to 4.911%, the highest level since 2007, and the 2-year Treasury yield staying at 5.229%.
On Wednesday, the Fed officials reiterated their preference to keep rates on hold. These comments lift the US bond yields higher amid robust momentum in US growth. Federal Reserve (Fed) Governor Christopher Waller stated that it's too soon to tell if more policy rate action is needed while adding that the central bank can wait, watch, and see before deciding on a policy path. While Fed Bank of New York John Williams said the central bank needs restrictive monetary policy for a while to cool inflation and the path of monetary policy depends on the data.
Furthermore, the geopolitical conflict between Israel and Hamas remains in focus. On Tuesday, Gaza authorities said an Israeli air attack on Tuesday killed 500 people at a hospital in the Palestinian territory, while Israel stated the damage was caused by a Palestinian attack. The escalating geopolitical tensions in the Middle East and the uncertainty in the market could boost the demand for a traditional safe-haven asset such as gold.
Gold traders will monitor the US Jobless Claims and the Philly Fed index and Existing Home Sales due later on Thursday. Also, Fed Chair Powell is scheduled to speak. Market players will take cues from the data and find trading opportunities around gold price.
|Today last price
|Today Daily Change
|Today Daily Change %
|Today daily open
|Previous Daily High
|Previous Daily Low
|Previous Weekly High
|Previous Weekly Low
|Previous Monthly High
|Previous Monthly Low
|Daily Fibonacci 38.2%
|Daily Fibonacci 61.8%
|Daily Pivot Point S1
|Daily Pivot Point S2
|Daily Pivot Point S3
|Daily Pivot Point R1
|Daily Pivot Point R2
|Daily Pivot Point R3
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.