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Gold hits 2-week high, within striking range of $1,900 as dollar slides

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– Oil prices might not be getting the risk premium many thought from the Middle East’s latest conflagtration but gold seems to be acing it, back in its role as a safe haven of choice — especially after the dollar’s crumble this week.

Gold’s most-active contract on New York’s Comex, December, settled up $12, or 1%, at $1,887.30 an ounce after a session high of $1,890.85. That left the benchmark gold futures contract less than $10 from returning to the psychologically-bullish $1,900 level. Comex gold last traded in the $1,900s on Sept. 27.

The , more closely watched by some traders than futures, was at $1,874.33, up $13.81, or 0.7%, on the day. The session peak was $1,858.70.

Gold rose as the backed further from last week’s 11-month peaks and bond yields, benchmarked to the , retreated from the highest levels since 2007.

“Falling global bond yields continue to fuel gold’s price rally,” said Ed Moya, analyst at online trading platform OANDA. “Gold is seeing inflows on both uncertainty over how much market turmoil will stem from the Israel-Hamas war and as the Fed tries to cool the economy.”

Moya noted that gold had recovered roughly 40% of its losses over the past month. “Bullish momentum might remain in place until price action approaches the $1,896 level. If Wall Street becomes convinced that rates have peaked and the chances of more tightening in 2024 are unlikely, gold could rally back above the $1,920 level.”

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