Gold Stands Steady Near $2,000 Amid Middle East Tensions and Resilient US Economy

Published on Oct 27, 2023 14:11

Gold clung to its position near $2000 per ounce, eking out modest gains over the week with the Middle East`s geopolitical uncertainties playing key role in bolstering its appeal. Israeli forces pressed forward with a significant ground operation in Gaza, despite ongoing diplomatic efforts to forestall a full-scale invasion. Nevertheless, gold`s upward trajectory was curbed by the resilience of the US economy, reinforcing expectations of sustained higher interest rates. The US economy`s surprising expansion, the fastest in nearly two years during the third quarter, defied earlier predictions of a looming recession. Additionally, the European Central Bank`s decision to maintain its key interest rate followed a string of disappointing PMI readings, highlighting the cautious economic landscape in Europe. MCX December gold futures are trading little changed at Rs 60935 per 10 grams. The counter may continue to face resistance near Rs 61100 & Rs 61300 levels.