Gold Waits For Time To 'Explode', The Middle East War Is Hotter!

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Gold is still struggling to break through the $2,400 level after Wednesday's temporary gains despite rising geopolitical tensions in the Middle East and Fed policy easing forecasts looming.


At 9.30am, the price of gold was at $2,388.98, up by 0.22% since it opened in early trading on Thursday in the Asian session.


Geopolitical tensions remain high as Israel awaits a response from Hamas and Hezbollah over the death of its leader, Ismail Haniyeh.


Meanwhile, Egypt ordered all its airlines to avoid using Iranian airspace for the rest of Thursday amid heightened tensions.


If you look broadly, the position of the current gold price movement is the result of strong sentiment from investors. A rise in US Treasury bond yields will weigh on metals and strengthen the USD.


The 10-year US Treasury note rose seven basis points to stand at 3.968% and the strong US dollar gained 0.27% to 103.20.


The recent limited US economic data has shifted investors' focus towards the Initial Jobless Claims figures to be published on Thursday. This report is something that the market needs to watch to confirm the movement of the economy, especially employment.


Meanwhile, major central banks in Asia report they are for now avoiding physical gold purchases.


The World Gold Council hinted that China would not buy the precious yellow metal for the third consecutive month.

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