Gold prices rose on Wednesday after a deadly explosion in Gaza stoked fears of an escalating regional conflict, keeping the safe-haven asset in demand among nervous investors despite robust US economic data and a high interest rate scenario.
Spot gold was up 0.4% at $1,929.89 an ounce by 0123 GMT and US gold futures were also up 0.4% at $1,942.70.
About 500 Palestinians were killed in an explosion at a hospital in Gaza City on Tuesday, which Israeli and Palestinian officials blamed on each other and which sparked protests in the West Bank and across the Middle East.
Gold prices, which have risen about $100 since the start of the conflict, have rallied despite recent robust US economic data, fuelling bets of higher-for-longer interest rates, which tend to lift the dollar and bond yields.
US factory output and retail sales rose more than expected in September, suggesting the economy ended the third quarter on a strong note.
Markets are now looking to Federal Reserve Chairman Jerome Powell’s speech on Thursday for clues on interest rates.
Richmond Fed Bank President Thomas Barkin said on Tuesday that higher long-term borrowing costs were weighing on demand.
Minneapolis Fed Bank President Neel Kashkari said inflation had taken much longer than expected to come down and was “still too high”.
China’s economy probably slowed in the third quarter, data is expected to show on Wednesday.
Spot silver was up 0.5% at $22.93, platinum was up 0.2% at $898.77 and palladium was down 0.8% at $1,134.93.
