Gold rises amid declining US bond yields and Middle East tensions

Gold prices rose on Wednesday as US Treasury yields fell. Still, gains were reduced after signs of a cooling in safe-haven demand appeared after the United States and Russia led international calls to stop the fighting between Israel and the Palestinian Islamic Resistance Movement (Hamas).

Gold rose in spot transactions 0.2 percent to $1,973.17 per ounce by 0603 GMT, after declining in the previous two sessions from the highest level in five months that it recorded last week. US gold futures fell 0.1 percent to $1,983.30.

Investors are closely watching the war in the Middle East as world leaders seek either a halt to the fighting or a ceasefire between Israel and Hamas so that humanitarian aid can be delivered to besieged Palestinian civilians.

The markets are also awaiting the third quarter GDP data in the United States tomorrow, Thursday, and the US personal consumption expenditures price index on Friday, before the monetary policy decision from the Federal Reserve next week.

The dollar index fell and standard ten-year US Treasury bond yields fell as recent sales led investors.

As for other precious metals, silver settled in spot transactions at $22.91 per ounce, platinum also settled at $884.63, and palladium rose 0.5 percent to $1,124.80.