Gold prices rebound amid Middle East tensions

Gold prices rebounded on Thursday, snapping a five-day losing streak. The precious metal benefited from the growing geopolitical tensions in the Middle East region and increased expectations for interest rate cuts by the US Federal Reserve.

Spot gold climbed 0.8 per cent to $2,399.50 per ounce, while US gold futures rose 0.2 per cent to $2,437.80.

Analysts believe that the long-term outlook for gold remains positive, supported by factors such as geopolitical risks and declining US Treasury yields.

The recent decline in Treasury yields, following weaker-than-expected US jobs data, has boosted gold’s appeal as a non-yielding asset.

Market participants are awaiting the release of US jobless claims data later the day, as well as a speech by Richmond Fed President Tom Barkin, for further clues on the Fed’s monetary policy stance.

Geopolitical tensions in the Middle East, particularly following the killing of a Hamas leader in Tehran, have also contributed to gold’s safe-haven appeal.

While gold prices have recovered, top consumer China maintained its gold reserves unchanged for the third consecutive month in July.

Silver, platinum, and palladium also experienced gains, with silver rising 1.1 per cent to $26.90 per ounce. Platinum and palladium also rose by 0.7 per cent to $925.80 and 1.4 per cent to $894.75, respectively.

Attribution: Reuters