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GOLD: Haven Buying Drives Solid Gain

GOLD
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Gold is slightly lower in today’s Asia-Pac session, after closing 1.1% higher at $2663.23 on Tuesday.

  • Bullion benefited from a flight to safety as the markets monitored Israel's invasion of Southern Lebanon and Iran's missile attack on Israel.
  • Geopolitical risks overshadowed yesterday's ISM Mfg miss and higher-than-expected job openings data.
  • US job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labour market.
  • The ISM’s manufacturing employment measure dropped to 43.9 from 46.0 in August. Its measure of prices paid by manufacturers decreased to 48.3, the lowest level since December 2023, from 54.0 in August.
  • Gold has rallied nearly 30% this year, hitting a series of record highs.
  • Recent gains have been fueled by anticipation of interest rate easing by the Federal Reserve, which last month kicked off its cutting cycle with a 50bp move.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the focus is on $2690.2 next, a Fibonacci projection. Firm support lies at $2589.8, the 20-day EMA.
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Gold is slightly lower in today’s Asia-Pac session, after closing 1.1% higher at $2663.23 on Tuesday.

  • Bullion benefited from a flight to safety as the markets monitored Israel's invasion of Southern Lebanon and Iran's missile attack on Israel.
  • Geopolitical risks overshadowed yesterday's ISM Mfg miss and higher-than-expected job openings data.
  • US job openings unexpectedly increased in August after two straight monthly decreases, but hiring was soft and consistent with a slowing labour market.
  • The ISM’s manufacturing employment measure dropped to 43.9 from 46.0 in August. Its measure of prices paid by manufacturers decreased to 48.3, the lowest level since December 2023, from 54.0 in August.
  • Gold has rallied nearly 30% this year, hitting a series of record highs.
  • Recent gains have been fueled by anticipation of interest rate easing by the Federal Reserve, which last month kicked off its cutting cycle with a 50bp move.
  • Lower rates are typically positive for gold, which doesn’t pay interest.
  • According to MNI’s technicals team, the focus is on $2690.2 next, a Fibonacci projection. Firm support lies at $2589.8, the 20-day EMA.