GOLD Price Maintains Momentum Despite Higher US Yields and ...

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Gold Price Maintains Momentum Despite Higher US Yields and Positive Economic Data

Gold price (XAU/USD) is displaying strong upward momentum during the early hours of Asian trading on Thursday. This movement comes in spite of higher US Treasury bond yields, as the precious metal remains buoyant due to increasing risk aversion. As of the latest update, gold price is up 0.21% for the day, trading at $1,983.

Recent economic data from the United States indicates that the country's economy is gaining momentum. September's US New Home Sales reached 759,000 MoM, surpassing market expectations of 680,000. On Tuesday, US PMI data also exceeded estimates. The flash Composite PMI for October rose to 51.0 from 50.2, with the Manufacturing PMI at 50 and the Services PMI at 50.9, both above consensus figures.

However, despite these positive economic indicators, increasing geopolitical tension in the Middle East is driving demand for safe-haven assets like gold. On Wednesday, Israeli Prime Minister Benjamin Netanyahu announced preparations for a ground invasion of Gaza, though he did not provide specific details regarding the operation's timing or other particulars.

From a technical perspective, gold continues to thrive during periods of crisis, such as wars and economic restrictions. Gold is once again proving to be a preferred safe-haven asset, and it appears poised to increase in value further. The next key price targets to watch are $2,020 and $2,070.



Our preference

Long positions above 1931.00 with targets at 2020.00 & 2070.00 in extension.