Investing.com– Gold prices were higher on Thursday as ongoing geopolitical tensions and sluggish dollar stoked demand for the yellow metal.
Spot Gold rose around 0.6% to $2,632.84 per ounce, while gold futures expiring in February ticked up 0.6% to $2,650.64 an ounce by 1:11 p.m. ET (18:11 GMT).
Geopolitical tensions in the Middle East also contributed to bullion’s gains.
The Palestinian militant group Hamas and Israel accused each other on Wednesday of hindering a ceasefire deal, with Hamas blaming Israel for imposing additional conditions and Israeli Prime Minister Benjamin Netanyahu alleging Hamas reneged on prior understandings.
Gold is seen as a safe haven asset amid uncertainties in the market.
US dollar lower but remains nears 2-year high as jobless claims surprises to downside
The dollar index was flat Thursday, though continued to hover near two-year high it touched last week following data showing fewer U.S jobless claims that expected for the week ended Dec. 21.
In the week ended Dec. 21, 219,000 people filed for unemployment insurance, down 1,000 from the prior week and lower than estimates for 223,000.
But continuing claims rose 46,000 last week to 1.910 million, which was “the highest print for continuing claims since the week ended November 12, 2021,” Jefferies in a note.
The dollar cut some losses to trade flat as Treasury yields racked up gains on expectations of less dovish Fed policy,
Higher interest rates put downward pressure on gold as, as the opportunity cost of holding gold increases, making it more attractive compared to interest-bearing assets like bonds
The yellow metal has seen marginal moves this week, after losing more than 1% in the previous week, reflecting uncertainty about the metal’s outlook
Other precious were mixed on Thursday. Platinum Futures declined 0.7% to $953.35 an ounce, while Silver Futures rose by 0..2% to $30.34 an ounce.
Copper edges up on China stimulus
Among industrial metals, copper prices gained after a Reuters report showed that Chinese authorities plan to issue a record-breaking 3 trillion yuan ($411 billion) in special treasury bonds next year, in an intensified fiscal effort to stimulate a struggling economy.
Analysts also attributed the weakness in copper to seasonal sluggishness as industrial production and construction projects often slow down as businesses and projects prepare for year-end closures and holidays.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) Copper Futures rose 0.2asin% to 74,060.00 yuan a ton.
Benchmark copper contracts on the London Metal Exchange were closed on Thursday for the holiday.
(Ayushman Ojha continued to this report.)
This post is originally published on INVESTING.
