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Gold prices surge on Middle East tensions
Gold dropped to a low of around $1,810/oz on 4 October after the release of strong US jobs data fuelled expectations for a further US rate hike before the end of the year. Then, the direction of gold prices quickly changed following the outbreak of Israel-Hamas conflict on 7 October, with the precious metal nearing its record of about $2,075/oz set in 2020. Gold rallied 7.3% last month as demand for safe-haven assets has increased. We believe gold is likely to continue to benefit if Middle East tensions increase. Demand for safer assets has outweighed the impact of rising real yields, which are normally a key driver ... (full story)