Free Trial

Surges With Geopolitical Risk Despite Higher Yields & USD

GOLD

Gold is little changed in the Asia-Pac session, sitting close to an eleven-week high, after closing +1.3% at $1947.55 on Wednesday. Haven demand driven by geopolitical risk dominated a further climb for US Treasury yields and renewed USD strength.

  • Indeed, 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 more than 8% off the October lows.
  • President Joe Biden wrapped up a 7.5-hour trip to Tel Aviv to signal full US backing for Israel but fell short of appeasing Arab leaders, who sided with Hamas-controlled Gaza authorities in blaming Israel for a blast at a hospital that allegedly killed hundreds.
  • According to MNI’s technicals team, bullion cleared key resistance at $1953.0 (Sep 1 high) opening up $1965.5 (61.8% retrace of May 4 – Oct 6 bear leg). Indeed, Wednesday’s high of $1962.64 came close to this level before it was helped lower by headlines that Gaza humanitarian aid was being allowed to pass from Egypt.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.