Gold Roars Back; Nears $1900, Surging $70 from 7-Month Low

Published on Oct 12, 2023 14:20

Gold surged to nearly $1900 an ounce, reaching a two-week high, thanks to a weakened dollar and lower Treasury yields after the Federal Reserve reaffirmed its commitment to high interest rates to combat inflation. Ongoing geopolitical uncertainties in the Middle East due to the Israel-Hamas conflict also drove up demand for the safe-haven metal. This gold rally persisted despite the Fed`s stance on keeping rates elevated to tackle inflation and hotter-than-expected US producer inflation data. Investors are now awaiting US consumer inflation data for further guidance. Gold`s December futures on the Comex in New York traded at $1893.4, while MCX gold for December delivery reached Rs 58,139 per 10 grams, with strong resistance at around Rs 58,400.