OrePulse

Precious Metals

Posted By OrePulse

Published: 08 Oct, 2024 13:17

Gold edges up due to conflict in the Middle East

Spot gold rose 0.3% to $2,650.22 per ounce by 1142 GMT.

Gold prices, up 28% so far this year, were under pressure since Friday's strong U.S. jobs report prompted markets to adjust estimates of the depth of U.S. November rate cuts.

"In addition, escalating tensions in the Middle East could accelerate the flight to safety – keeping bulls in the game."

In the Middle East, Hezbollah's deputy leader said that the group backs efforts to reach a ceasefire in Lebanon, and for the first time omitted any mention of a Gaza truce deal as a pre-condition to halting the group's attacks on Israel.

In China, where markets returned from the Golden Week holiday, benchmark PM gold price saw the worst post-Golden Week session since 2017 with a decline of 0.12%, said Hugo Pascal, precious metals trader at Improved.

Over the last seven years, the Chinese gold benchmark saw a growth of 0.63% on average after this annual holiday.

"While certain observers have claimed that Chinese were flocking to precious metals stores during the Golden Week, the data presents a contrasting narrative, highlighting ongoing weakness," Pascal added.

Physical demand for gold in top consumer China has been muted in recent months with China's central bank holding back on buying gold for its reserves for a fifth straight month in September.

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