World gold prices fell sharply, hitting a three-week low after news that Hezbollah wanted to discuss a ceasefire with Israel.
A senior Hezbollah official said yesterday (October 8) he supported Lebanese authorities' efforts towards a ceasefire, but would continue fighting if Israel did not halt its campaign.
"We support the political efforts that Lebanese Parliament Speaker Nabih Berri is making towards a ceasefire," said Hezbollah deputy leader Naim Qassem in a televised speech.
This is the first time Hezbollah has not mentioned ending the conflict in Gaza as a precondition for stopping fighting on the Lebanon-Israel border. It is not clear whether this is a sign of a change in Hezbollah's stance.
"Once a ceasefire is achieved, other issues will be considered through diplomatic channels," Qassem said. However, he warned that if Israel continued the war, "the battlefield will be the place to decide the issue."
Berri is a Hezbollah ally in Lebanese politics. He consulted with the group on a proposal for a 21-day ceasefire in late September, but the idea collapsed. Lebanese Prime Minister Najib Mikati has been trying to broker a ceasefire between Israel and Hezbollah, separate from efforts to broker peace in Gaza.
Israel is currently conducting major military operations against Hezbollah in Lebanon. Market participants are viewing today's news as a de-escalation of tensions in the Middle East.
After the information appeared, the price of gold in December decreased by 33.1 USD, down to 2,632.8 USD/ounce. At the time of writing (0:45 on October 9, 2024 - Vietnam time), the world gold price listed on Kitco was at 2,615.6 USD/ounce.
Not only gold, the news about Hezbollah has "submerged" the crude oil market - a commodity closely related to precious metals. Nymex crude oil prices fell about $3.75/barrel to $73.5/barrel.
Meanwhile, only the USD increased. Recorded at 0:45 on October 9, the US Dollar Index, which measures the greenback's fluctuations against six major currencies, was at 102.320 points. Meanwhile, US Treasury bond yields increased. The 10-year bond yield is currently at 4.028%. These two factors contributed to the decline in the precious metals market.
In addition, US stock indexes are also rising. This is also negative news for the precious metals market.
Separately, the much-anticipated economic briefing from China’s National Development and Reform Committee on Tuesday “disappointed markets, with little new stimulus,” according to brokerage SP Angel. That news prompted a sell-off in Chinese stocks, with the Hang Seng Index falling nearly 10%, its biggest one-day loss in nearly two years.
Technically, December gold bulls have the solid near-term technical advantage. The bulls’ next upside price objective is to produce a close above $2,708.70 an ounce. The bears’ next near-term downside price objective is to push gold futures below $2,572.50 an ounce.
