Opening the trading session on October 23, the world spot gold price decreased by 16 USD, to 1,965 USD per ounce. Last week, the price reached a 5-month high, at 1,997 USD, as investors sought shelter from conflict in the Middle East.
However, US government bond yields reached a 16-year high, making gold less attractive, because this instrument does not pay fixed interest. Kitco News ' survey also shows that experts predict prices will adjust this week after 2 consecutive weeks of increases.
World spot gold prices turned down this morning.
This week, investors will focus on the Personal Consumption Price Index (PCE) - the preferred inflation measure of the US Federal Reserve (Fed). They also wait for US GDP data for the third quarter and the interest rate decision of the European Central Bank (ECB).
On the physical market, SPDR Gold Trust - the world's largest gold trust - last week said its reserves increased by 1.8%. Meanwhile, Indian traders are having to sharply reduce gold prices due to slowing demand before the Dussehra holiday.
Oil prices also went down at the beginning of the session on October 23, because the aid delegation began arriving in the Gaza Strip last weekend. This is a diplomatic effort to prevent the Israel-Hamas conflict from spreading to the world's major oil producing countries.
Brent oil is currently down 0.9% to 91.3 USD a barrel. US crude oil WTI decreased 1% to 87 USD. Last week, Brent at one point rose to 93 USD, as investors feared supply disruptions if conflict spread in the Middle East.
The US is said to have pressured Israel to postpone its attack on the Gaza Strip, in order to increase time to rescue more hostages and provide aid to the region. To reduce supply pressure, the US also stopped sanctions against Venezuela - a member of the Organization of Petroleum Exporting Countries (OPEC). French and Dutch leaders will also travel to Israel this week to find a solution to the conflict that has lasted since the beginning of the month.
Ha Thu (according to Kitco, Reuters)
