Gold prices rise sharply due to geopolitical tensions and falling US yields
According to FXStreet, on October 25, the world gold price increased because the US Treasury bond yield decreased, causing investors to seek safer assets. In addition, escalating tensions in the Middle East and concerns about the US election made gold more attractive.
Spot gold edged up $20.50 to $2,736.30 an ounce today. Gold futures also rose $19.40 to close at $2,748.40 an ounce from the previous session.
Market sentiment is more positive, as shown by the rising US stock market.
Data from the US shows that the labor market remains strong, not as weak as the US Federal Reserve (Fed) forecast. The US economy is still in the expansion phase as the PMI index from S&P Global is better than expected.
However, US housing data was mixed: building permits fell, but new home sales rose. “Rising US debt concerns are driving investment demand for gold,” said ANZ analysts.
Reuters sources said that uncertainty ahead of the US election also contributed to supporting the gold market, as investors felt insecure.
Gold prices are rising ahead of the election results as investors anticipate a tight race. Former President Donald Trump, the Republican nominee, is widely seen as having an advantage over Vice President Kamala Harris in the upcoming election.
In the geopolitical situation, Israeli officials have made strong statements against Iran, and an Israeli attack on Tehran could further escalate the situation.
Gold price towards 2,800 USD/ounce
Gold prices held steady within the previous day’s range, according to analysts at FXEmpire. Earlier, prices fell after hitting a new record high of $2,758.
There is currently resistance around $2,754. However, if gold continues to rise, it may take a period of volatility before breaking above this week’s high.
Analysis of the “bullish flag” pattern suggests a potential target for gold at $2,815. There are also two other Fibonacci measurements that confirm this price zone, one at $2,797 and the other at $2,808. So the next potential price zone for gold could be between $2,797 and $2,815.
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