Gold price rebounds to $2,650 as Middle East conflict escalates
The post Gold price rebounds to $2,650 as Middle East conflict escalates appeared on BitcoinEthereumNews.com.
Gold rises from $2,638 to $2,659, fueled by escalating tension between Israel and Iran and increasing US Treasury yields. US labor market data softens; however, ISM Services PMI reflects better business activity in September. US Dollar Index (DXY) up 0.35%, 10-year Treasury yields climb to 3.84%, tempering market expectations for big November rate cut. Gold price recovers in the mid-North American session on Thursday after hitting a daily low of $2,638. The golden metal rose on rising fears over the Israel–Iran conflict along with a stronger US Dollar. In addition, bets that the Federal Reserve (Fed) will ease policy aggressively faded and boosted US yields. The XAU/USD trades at $2,659. Wall Street trades with losses amid rising geopolitical risk. The market mood remains downbeat as Israel advanced its military into Lebanon despite Iran’s significant missile attack on Tuesday. Meanwhile, US President Joe Biden commented publicly that he discussed attacking Iranian oil facilities with Israeli officials. After the headline, bullion prices rose toward $2,650 and above. Earlier, US data revealed that the labor market continued to soften. The US Department of Labor revealed that the number of people filing for unemployment benefits rose above estimates. Last but not least, the Institute for Supply Management (ISM) revealed that business activity, measured by the ISM Services PMI, improved in September compared to August’s number. Other data showed that Factory Orders for August contracted, while traders eye the release of the latest US jobs report on Friday, which is projected to spur volatility in the financial markets. Meanwhile, Fed officials have crossed the newswires. The Atlanta Fed’s Raphael Bostic stated that the natural employment rate has shifted, and it could be lower. Chicago Fed President Austan Goolsbee said the latest inflation numbers are at the Fed’s target, while the labor market is at full…
Filed under: News - @ October 3, 2024 7:16 pm