Gold prices continued to rise on Tuesday, after achieving sharp gains due to the increasing uncertainty in the market due to the escalation in Gaza, as cautious statements issued by senior officials of the US Federal Reserve Board affected the dollar and bond yields.
The conflict threatens further volatility for investors, adding to the uncertainty ahead of the corporate earnings season and crucial US inflation data this week.
Gold is seen as a safe investment in times of economic uncertainty, but since it does not generate a return, it loses its attractiveness when interest rates rise.
Benchmark ten-year Treasury bond yields have fallen sharply from their 2007 highs.
The dollar index fell against the background of the US central bank’s senior officials ‘ indication yesterday that the rise in long-term bond yields could distract the bank from further increases in the short-term interest rate.
The markets are now looking forward to the minutes of the US central bank’s September meeting, scheduled for release on Wednesday.
