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GOLD: Haven Demand Pushes To Record

GOLD
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Gold is trading just below its all-time high of $2,711.99, up 0.6% in today’s Asia-Pacific session, following a 0.7% gain yesterday—its third consecutive daily rise.   

  • Geopolitical tensions remain high amid reports of Hamas leader Sinwar being killed in Gaza.
  • Safe-haven demand outweighed the impact of stronger-than-expected US economic data, which continues to reflect a resilient economy. US Treasury yields jumped higher, with the 2-year yield up 3bps to 3.97% and the 10-year up 8bps to 4.10%. Lower rates are typically positive for gold, which doesn’t pay interest.
  • US retail sales were stronger than expected across the board and with upward revisions, with the headline index up 0.4% m/m and the core figure and control group measures, up an even stronger 0.7% m/m. Control-group sales rose at an annualised pace of 6.4% in Q3, suggesting a strong pick-up in spending, and contributing to the Atlanta Fed’s GDPnow estimate rising to 3.4%.
  • Meanwhile, initial jobless claims (241k) were elevated by 2024 standards but below the 259k expected.
  • According to MNI’s technicals team, the next resistance is seen at $2,720.5.
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Gold is trading just below its all-time high of $2,711.99, up 0.6% in today’s Asia-Pacific session, following a 0.7% gain yesterday—its third consecutive daily rise.   

  • Geopolitical tensions remain high amid reports of Hamas leader Sinwar being killed in Gaza.
  • Safe-haven demand outweighed the impact of stronger-than-expected US economic data, which continues to reflect a resilient economy. US Treasury yields jumped higher, with the 2-year yield up 3bps to 3.97% and the 10-year up 8bps to 4.10%. Lower rates are typically positive for gold, which doesn’t pay interest.
  • US retail sales were stronger than expected across the board and with upward revisions, with the headline index up 0.4% m/m and the core figure and control group measures, up an even stronger 0.7% m/m. Control-group sales rose at an annualised pace of 6.4% in Q3, suggesting a strong pick-up in spending, and contributing to the Atlanta Fed’s GDPnow estimate rising to 3.4%.
  • Meanwhile, initial jobless claims (241k) were elevated by 2024 standards but below the 259k expected.
  • According to MNI’s technicals team, the next resistance is seen at $2,720.5.