Gold Takes a Breather After Hitting an 11-Week High

Published on Oct 19, 2023 12:32

Gold took a breather in Asia trades today, shedding more than $10 trade at $1958.80 an ounce. The commodity hit their highest point in 11 weeks, reaching to $1975 levels yesterday following the ongoing conflict between the Israeli military and Hamas militants, which has increased demand for the precious metal as a safe-haven asset. Tensions in the Middle East escalated following a devastating explosion at a Gaza City hospital that resulted in the deaths of hundreds of Palestinians, raising concerns about regional stability and the potential for international intervention. Investors were also keeping a close watch on a speech by US Federal Reserve Chair Jerome Powell, seeking insights into the future of monetary policy. Stronger-than-expected economic data in the United States reinforced the expectation that the Fed would maintain elevated interest rates for an extended period. As a result, the benchmark 10-year US Treasury yield reached a 16-year high, surpassing 4.95%, which acted as a constraint on further increases in gold prices. MCX December bullion futures were last seen trading down nearly Rs 200 at Rs 59891 per 10 grams. The metal turned around from Rs 60259 levels yesterday to close up nearly Rs 900. The metal should face good resistance near Rs 60300 levels today as well.