Gold Trades Higher on Rising Geopolitical Risk and a Falling Dollar
Gold prices rose for a third-straight session early on Wednesday on higher geopolitical risk following a report that Israel is planning to strike at Iranian nuclear facilities while the dollar weakened.
Gold for August delivery was last seen up US$16.00 to US$3,328.60 per ounce.
Israel is prepared to strike at Iran's nuclear infrastructure, CNN reported on Tuesday, citing U.S. intelligence officials. The report noted the officials did not know whether Israel has made a final decision to go ahead with an attack, which could further unsettle the fractious Middle East.
The report adds further support for safe-haven buying, adding to concerns over a rising U.S. budget deficit following Moody's Ratings cut to its U.S. credit rating last week, while the global economy is slowing as U.S. tariffs upset trade flows.
Gold is "supported by renewed US dollar weakness amid ongoing concerns about the fiscal health of the US economy, and the latest geopolitical news from the Middle East", Saxo Bank noted.
The dollar was sharply lower early, bullish for commodities priced in the currency. The ICE dollar index was last seen down 0.51 point to 99.61. Treasury yields rose, with the U.S. two-year note last seen paying 4.011%, up 3.4 basis points, while the yield on the 10-year note was up 5.2 points to 4.543%, the highest since Feb.12.
Source: MTnewswires
