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Firmer In Asia-Pac After A Large Gain On Thursday


Gold is 0.2% higher at a 13-week high in the Asia-Pac session, after closing +1.4% at $1974.46, off a high of $1977.78, on Thursday.

  • The demand for bullion remains robust, primarily driven by a surge in safe-haven purchases due to escalating tensions in the Middle East. The US has reported an increase in drone attacks in Iraq and Syria. Additionally, an American destroyer in the Red Sea intercepted cruise missiles launched at Israel by Houthi rebels in Yemen.
  • Once again, geopolitical risk dominated a further climb for US Treasury yields. Higher government bond yields, in the face of rising geopolitical uncertainty, appear to have driven flows into alternative portfolio hedges like gold, which has rebounded almost 10% off the October lows.
  • According to MNI’s technicals team, Thursday’s clearance of $1965.5 (61.8% retrace of May 4 – Oct 6 bear leg) opens $1987.5 (Jul 20 high).

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