Gold prices climbed higher on Wednesday on safe-haven appeal amid the ongoing conflict in the Middle East.
Investors kept a wary eye on the situation in the Middle East amidst reports of an imminent ground invasion of Gaza by Israel.
A stronger dollar, and higher bond yields limited the yellow metal’s upside.
The dollar index climbed to 106.53, after exhibiting weakness in the Asian session.
Gold futures for December ended higher by $8.80 at $1,994.90 an ounce.
Silver futures for December ended down $0.109 at $23.007 an ounce, while Copper futures for December settled at $3.5910 per pound, down $0.0330 from the previous close.
Edward Moya, Senior Market Analyst at OANDA says, “Gold should remain volatile over the next week, with downside potentially targeting the $1950 level and major resistance residing at the psychological $2000 level.”
The Commerce Department said new home sales soared by 12.3% to an annual rate of 759,000 in September after plunging by 8.2% to a revised rate of 676,000 in August.
Economists had expected new home sales to climb by 0.7% to an annual rate of 680,000 from the 675,000 originally reported for the previous month.
With the much bigger than expected increase, new home sales reached their highest annual rate since hitting 773,000 in February 2022.
Amid lingering fears over further policy tightening by the Federal Reserve, traders looked ahead to the release of the U.S. GDP numbers for the third quarter on Thursday and the PCE price index on Friday for further direction.