Oct 2 2024, 15:23
Gold fell following Tuesday’s surge, with markets awaiting the potential next steps in an expanding Middle East conflict after Israel pledged to retaliate against Iran’s missile strikes.
Bullion traded around $2,650 an ounce after closing 1.1% higher in the previous session, when Iran launched about 200 ballistic missiles at Israel. President Benjamin Netanyahu called the move a “big mistake” and vowed to make Iran “pay for it.” The US is actively supporting preparations to defend Israel, according to an earlier report.
Gold has rallied nearly 30% this year, hitting a series of record highs in the process. Recent gains have been fueled by anticipation for interest rate easing by the Federal Reserve, which last month kicked off its cutting cycle with a 50-basis-point move.
Along with any further escalation of conflicts in the Middle East, traders will be looking to the latest US jobs report due Friday, which may prove to be pivotal in offering insights on the Fed’s pace of rate cuts. Swaps traders are wagering on a one-in-three chance the central bank will deliver another half-point reduction in November.
Spot gold was down 0.4% to $2,652.56 an ounce as of 8:20 a.m. in London, below its all-time high of $2,685.58 reached last week. The Bloomberg Dollar Spot Index was little changed. Silver dipped, platinum edged higher and palladium was flat.
Source: Bloomberg
