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Gold prices rebounded on Tuesday as benchmark US Treasury bond yields declined and investors awaited economic data for clues about interest rates in light of the growing tensions in the Middle East.
Gold rose in spot transactions 0.3 percent to $1,977.79 per ounce by 0712 GMT, while US gold futures rose 0.1 percent to $1,989.
Ten-year US Treasury yields fell after briefly exceeding 5 percent on Monday, further threatening an economic slowdown due to higher borrowing costs.
Gold is considered a safe investment in times of crisis, and it rose about nine percent in the past two weeks due to war-related fears, recording the highest level in five months on October 20.
Investors are watching the war in the Middle East, as the Israeli army issued a statement indicating that there is no intention to end the attacks on the Gaza Strip and that it is prepared for a ground attack.
Markets are also awaiting global purchasing managers’ indices scheduled to be released later on Tuesday, third-quarter GDP data in the United States on Thursday, and the US personal consumption expenditures price index on Friday to assess the extent of their impact on the monetary path of the Federal Reserve (the US central bank).
As for other precious metals, the price of silver in spot transactions jumped 0.9 percent to $23.20 per ounce, platinum increased 0.2 percent to $898.52, and palladium rose 1.3 percent to $1,132.84.
