The post Gold price drops on high US yields as Middle East conflict pauses appeared on BitcoinEthereumNews.com.

Gold price slumps on Wednesday amid heightened tensions between Israel and Iran. A robust ADP National Employment Change report could be a prelude to an upbeat NFP. Nonfarm Payrolls data on Friday is expected to show 140K new US jobs in September. Gold retreated on Wednesday during the North American session and dropped 0.50% daily as traders eyed Israel’s reaction to Iran’s attack on Tuesday. Geopolitics remains the driver for traders, which lifted Gold prices after posting back-to-back bearish sessions since last Friday. At the time of writing, the XAU/USD trades at $2,648 after hitting a high of $2,663. The market mood remains downbeat, as portrayed by US equities trading in the red. According to different newswires, developments in the Middle East suggest an escalation is likely. This indicates that Bullion prices could extend their gains in the short term. Israel’s envoy to the United Nations commented that Iran will face consequences for its missile attack on Tuesday. At the same time, US Deputy Secretary of State Kurt Campbell added that it is “not just Israel that is thinking about response options to Iran attack, US is too.” In addition, private hiring in the United States (US) increased above estimates in September, according to ADP National Employment Change data. Meanwhile, Richmond Fed President Thomas Barkin said the 50-basis-point (bps) rate cut in September acknowledged that rates were “out of sync.” Barkin added that some aspects of the economy suggest the disinflation process would continue but that “it remains difficult to say that the inflation battle has yet been won.” The non-yielding metal added to gains after the Fed decided to lower the fed funds rate at the September meeting. Nevertheless, higher US Treasury yields and a stronger US Dollar during the day are headwinds for the precious metal. The US…

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Filed under: News - @ October 2, 2024 7:18 pm