Gold Supported by Safe-Haven Demand
Gold held around $4,150 per ounce on Friday after rebounding in the previous session, as the recent selloff in equities drove safe-haven demand for government bonds and precious metals. The shift toward safer investments pushed bond yields sharply lower, easing pressure on non-yielding assets such as gold. Investors also weighed heightened geopolitical risks in the Middle East amid escalating hostilities between Saudi Arabia and Iran-backed Houthis in Yemen, while a Singapore-flagged container ship was sunk in the Strait of Hormuz this week by an Iranian projectile. Meanwhile, market participants continued to evaluate the Federal Reserve’s monetary policy outlook, with stronger-than-expected US economic data reinforcing expectations of further interest rate increases. Markets are currently pricing in approximately a 72% probability that the Fed will leave rates unchanged this month, while the likelihood of a rate hike in December has climbed to 92%.
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Gold held around $4,150 per ounce on Friday after rebounding in the previous session, as the recent selloff in equities drove safe-haven demand for government bonds and precious metals. The shift toward safer investments pushed bond yields sharply lower, easing pressure on non-yielding assets such as gold. Investors also weighed heightened geopolitical risks in the Middle East amid escalating hostilities between Saudi Arabia and Iran-backed Houthis in Yemen, while a Singapore-flagged container ship was sunk in the Strait of Hormuz this week by an Iranian projectile.
Meanwhile, market participants continued to evaluate the Federal Reserve’s monetary policy outlook, with stronger-than-expected US economic data reinforcing expectations of further interest rate increases. Markets are currently pricing in approximately a 72% probability that the Fed will leave rates unchanged this month, while the likelihood of a rate hike in December has climbed to 92%.