Gold prices rose on Wednesday after a deadly explosion in Gaza fueled fears of escalating regional conflict, leading anxious investors to seek the metal considered a safe haven. This occurred despite strong U.S. economic data and expectations surrounding interest rates. By 0123 GMT, spot gold had increased by 0.4% to $1929.89 per ounce, while U.S. gold futures also climbed 0.4% to $1942.70.
Gold prices have risen nearly $100 since the conflict began, even with recent strong U.S. economic data that bolstered bets on higher interest rates, which typically lead to a stronger dollar and higher Treasury yields. U.S. manufacturing output and retail sales surpassed expectations in September, indicating a strong finish for the economy in the third quarter.
Markets are now awaiting a speech from Federal Reserve Chair Jerome Powell on Thursday for signals regarding interest rates. In other precious metals, silver in spot transactions increased by 0.5% to $22.93 per ounce, while platinum rose by 0.2% to $898.77. Palladium, however, fell by 0.8% to $1134.93.
