Gold Retreats as Diplomatic Efforts Ease Middle East Tensions

Published on Oct 23, 2023 14:07

Gold futures slipped below $1980, losing its safe haven appeal following the ongoing diplomatic efforts aimed at preventing the Israel-Hamas conflict from escalating into a broader Middle East crisis. Gold is often considered a safe-haven asset during times of geopolitical turmoil, and as tensions eased, demand for such assets waned. Investors are also keeping a close eye on upcoming US economic data, including GDP and inflation figures, as they have the potential to impact the future direction of monetary policy. Federal Reserve Chair Jerome Powell`s recent comments regarding high inflation and the need for potentially lower economic growth have added an additional layer of uncertainty. Despite these considerations, the markets are anticipating that the central bank will maintain interest rates at its upcoming October 30-31 policy meeting. MCX gold for December delivery are trading down Rs 16 at Rs 60720 per 10 grams.