Gold prices rise, keep $2,000 in sight as U.S.-Iran tensions grow

October 27, 2023 04:12 PM AEDT | By Investing
Follow us on Google News: Gold prices rose on Friday and were just shy of the key $2,000 an ounce level as reports that the U.S. military struck Iran-linked targets in Syria spurred a renewed rush for safe haven assets.

The strikes, which were on two facilities in Eastern Syria, were in retaliation for recent attacks on U.S. troops in Iraq and Syria, the Pentagon said on Thursday. The Pentagon also said that attacks on U.S. troops had increased since the onset of the Israel-Hamas conflict earlier this month.

The news pushed up concerns over a broader escalation in the Middle Eastern conflict, which could potentially draw in more Arab powers. This in turn spurred a rush into conventional safe havens.

Fears of an escalation in the Israel-Hamas war have been a key driver of gold gains this month, putting the yellow metal at an over five-month high earlier in October.

Spot gold rose 0.2% to $1,989.49 an ounce, while gold futures expiring in December rose 0.1% to $1,999.0 an ounce by 00:47 ET (04:47 GMT). Both instruments were trading marginally higher for the week.

Fed meeting, inflation data in focus

But further gains in the yellow metal were held back by strength in the dollar and Treasury yields, as markets positioned for a Federal Reserve meeting next week.

While the central bank is widely expected to hold interest rates steady, it is also expected to reiterate its plans to keep rates higher for longer.

But before that, a reading on the personal consumption expenditures index- the Fed’s preferred inflation gauge- is due later on Friday. Any signs of sticky U.S. inflation gives the Fed more impetus to keep rates higher, which in turn bodes poorly for non-yielding assets such as gold.

Signs of resilience in the U.S. economy, following stronger-than-expected U.S. gross domestic product data for the third quarter, also give the Fed more headroom to keep rates higher.

The dollar steadied on Friday, and was set to add 0.4% this week.

Copper prices rise as China trends improve

Among industrial metals, copper prices rose slightly on Friday, extending a recovery from over five-month lows as data showed some improvement in the Chinese economy.

Copper futures rose 0.3% to $3.6022 a pound, and were also up 1.1% for the week.

Data on Friday showed that China’s industrial profits improved marginally in the year to September, falling 9% in the period after a 11% decline in the year to August.

Copper prices were also encouraged by better-than-expected third quarter U.S. GDP data.

This article first appeared in


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

Top ASX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK