Gold price (XAU/USD) clings to gains around $1,970 on Wednesday, prompted by a decline in long-term US bond yields. The precious metal managed to recover swiftly as the near-term trend remains firmer amid the Israel-Palestine conflict. The risks of widening tensions in the region persist as the Israeli troops are preparing to enter Gaza. A ground assault by the Israeli army in Gaza could escalate the chances of Iran’s intervention in the ongoing conflict.
The appeal for the US Dollar improved significantly as S&P Global reported an uptick in US business activity in October despite higher interest rates and multi-year high US bond yields. Unlike Asian and European economies, the US economy seems to be handling higher borrowing costs effectively due to robust consumer spending, easing price pressures, and strong labor demand. Gold price trades directionless around $1,970.00 after a sharp recovery as investors await key US economic data to be released later this week. The precious metal remains firmer, on a broader note, as it is trading near a five-month high. Short-term Exponential Moving Averages (EMAs) are upward-sloping, which indicates that the overall trend is bullish. Momentum oscillators also indicate that the bullish impulse is active.
