Gold prices break $2,000 amid geopolitical tensions and FOMC anticipation
2023.10.30 03:10
© Reuters
Gold prices have surpassed the $2,000 mark, driven by increased demand for safe-haven assets amid escalating geopolitical tensions in the Middle East and ahead of the Federal Open Market Committee (FOMC) meeting. This development comes as US Treasury yields have retreated from recent peaks but remain elevated, with the yield reaching a level not seen since 2007 at 5.02%.
The surge in US government debt returns has bolstered the strength of the US Dollar, resulting in an appreciation of both USD and gold. Gold, however, which does not bear interest, typically experiences selling pressure when the US Dollar and Treasury yields rise.
Despite these factors and US real yields hitting a 15-year high of over 2.60%, gold prices have shown resilience. The precious metal continues to hold its ground, demonstrating its value in times of uncertainty and market volatility.
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