2023.10.2313:37:00UTC+00Gold Falls As Safe-haven Bids Drop On Middle East Diplomatic Efforts

Hopes of a progress in diplomatic efforts to avert a wider conflict in the Middle East dimmed safe haven bids for the yellow metal. Safe haven buying had lifted the prices of Gold following the outbreak of the Middle East conflict earlier in the month.

The spike in bond yields also dented sentiment for the yellow metal. Ten-year U.S. bond yields breached the 5-percent level earlier in the trade amidst fiscal concerns triggered by a potentially huge supply of govt bonds. Fears of a resilient economy forcing the Federal Reserve to keep interest rates higher for longer also swayed sentiment. Yields were last recorded at this level in the middle of 2007. Sentiment remains impacted as the increase in bond yields and interest rates increases the opportunity cost of holding non-interest-bearing gold.

Gold Futures for December settlement slipped 0.29 percent to trade at $1,988.70. The day's trading range has been between $1,974.45 and $1,994.25. The 52-week trading range was between $1,618.30 and $2,085.40.

Spot Gold declined 0.15 percent to trade at $1,978.63 per troy ounce. The day's trading range has been between $1,964.41 and $1,982.87. The 52-week trading range was between $1,616.18 and $2,080.72.