51.22 F
April 18, 2024
PI Global Investments
Precious Metals

Gold shatters new records as Mideast tensions add to bullish mix

U.S. gold futures settled 1.1% higher at $2,281.8.

“We’re seeing some safe-haven demand flowing into gold, which relates to the Israeli strikes on Iran’s embassy in Syria,” said Daniel Ghali, commodity strategist at TD Securities.

The latest leg up in gold prices is probably also associated with short covering from family offices and proprietary trading shops, Ghali added.

Iran vowed to take revenge on Israel for an airstrike on the Iranian embassy compound in Damascus.

Saxo Bank’s Ole Hansen said an underlying bid from retail and central banks was being joined by momentum-following speculators who have extended their already elevated longs following gold’s break above $2,200.

The mix of bullish tailwinds has driven bullion nearly 10% higher so far this year.

“What makes the gold rally so unusual is that it is occurring despite significant traditional headwinds with the U.S. dollar rising, Treasury yields rising, the likelihood of higher for longer U.S. rates increasing,” said independent analyst Ross Norman.

The dollar jumped after Monday’s data showed U.S. manufacturing grew for the first time in 1-1/2 years in March.

Traders pared bets of a June interest rate cut to 58% versus around 60% before the data, which under normal circumstances, would pressure zero-yield bullion.

But while the gold market remains in a “highly bullish mood”, it probably needs to consolidate amid a shift back to a more hawkish view of Federal Reserve policy, said Tai Wong, a New York-based independent metals trader.

Silver rose 3.2% to $25.89 per ounce, platinum added 2.4% to $923.00 and palladium climbed 0.1% to $996.88.

(Reporting by Anjana Anil and Brijesh Patel in Bengaluru and Polina Devitt in London; Editing by Emelia Sithole-Matarise and Vijay Kishore)

Source link

Related posts

NYMEX: Precious Metals Prices – 29-03-24


Gold Struggles Ahead of a Busy Week


Aberdeen Standard Physical Precious Metals Basket Shares ETF (NYSEARCA:GLTR) Shares Sold by Raymond James Financial Services Advisors Inc.


Leave a Comment

* By using this form you agree with the storage and handling of your data by this website.