Precious: Gold takes a breather as investors await US economic data

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23/10/2023 10:46

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      COMEX gold speculators switch to net long position - CFTC
    

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      SPDR Gold holdings rose 1.77% on Friday
    

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      Markets await US PCE price index, Q3 GDP data this week
    

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      US 10-year Treasury yields at above 5%
    

  
 (Adds comments, updates prices as of 0910 GMT)
    By Brijesh Patel
       Oct 23 (Reuters) - Gold prices held steady on Monday
after hitting a five-month peak in the last session as investors
looked forward to key U.S. economic data this week and kept a
close watch on growing unrest in the Middle East.
    Spot gold  XAU=  was flat at $1,981.14 per ounce by 0910
GMT, and U.S. gold futures  GCcv1  eased 0.1% to $1,992.80.
    "The market is basically in need of a consolidation after a
strong rally in the past two weeks. It's equally important to
see what's happening in the U.S. bond market, because we seeing
a significant jump in the U.S. yields," said Ole Hansen, head of
commodity strategy at Saxo Bank.  US/ 
    The yield on the benchmark 10-year U.S. Treasury note rose
above 5.0%, decreasing appeal of non-yielding bullion.  US/ 
    Gold prices hit their highest since mid-May on Friday and
surged about 9% in the past two weeks as investors opted for the
safety of bullion on fears that the Israel-Hamas war could
escalate into a wider Middle East conflict.
    "If we start to see ETF investors getting back, having been
significant sellers since June, that could be the next leg-up in
gold," Hansen added.
    Holdings of SPDR Gold Trust  GLD , the world's largest
gold-backed exchange-traded fund (ETF), rose 1.77% to 863.24
tonnes on Friday, while COMEX gold speculators switched to net
long position in the week to Oct. 17.  CFTC/ 
    Washington warned of a significant risk to U.S. interests in
the Middle East as Israel bombarded Gaza with air strikes and
clashes on its border with Lebanon intensified.
    Investors will also focus on the U.S. PCE price index — the
Federal Reserve's favoured inflation gauge — U.S. GDP figures
for the third quarter, the European Central Bank's rate decision
and global flash PMIs for economic cues.
    Elsewhere, spot silver  XAG=  slipped 0.4% to $23.21 an
ounce, platinum  XPT=  fell 0.4% to $890.91 and palladium  XPD= 
dipped 1.1% to $1,085.49.
    

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Spot gold price in USD per oz    https://tmsnrt.rs/3MePNO9
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 (Reporting by Brijesh Patel and Swati Verma in Bengaluru;
Editing by Shilpi Majumdar)
 ((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848
5832, Outside U.S. +91 9590227221; Reuters Messaging:
Brijesh.Patel1.thomsonreuters.com@reuters.net))