Gold Prices Soared Due to Geopolitical Tensions, Declining US Yields
Gold prices little changed late on Thursday (23:14:12 GMT) as US Treasury yields dropped on demand for safe-haven assets. Heightened tensions in the Middle East and US election woes underpin the golden metal. At the time of writing, the XAU/USD trades at $2,734.
Risk appetite has improved, as portrayed by Wall Street trading in the green. US data reveals that the labor market remains solid and not as weak as projected by the Federal Reserve (Fed), which cut rates by 50 basis points (bps) in its last meeting due to fears of over-tightening monetary policy.
The US economy continued to strengthen as S&P Global Flash PMIs fared better than expected. Despite this, US housing data was mixed with Building Permits tumbling, while New Home Sales rose.
ANZ analysts commented, "Concerns around the rising US fiscal debt outlook is strengthening the investment case for Gold.”
Source : FXStreet